TaxTMI 
TaxTMI 
2019 (3) TMI 803
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....tion of rule 46A of the Income Tax Rules, 1962, is also in connection with ground no.1. 3. Brief facts are, the assessee, a partnership firm, is engaged in the business of manufacturing of Gold and Diamond jewellery. For the assessment year under dispute, the assessee filed its return of income on 28th September 2012, declaring total income of Rs. 72,17,704. During the assessment proceedings, the Assessing Officer found that as per documents impounded during the survey operation conducted in the business premises of the assessee, a statement of account furnished to State Bank of India showing sundry debtors amounting to Rs. 79,56,37,453, as on 31st March 2012 was found. However, he noticed, as per Balance Sheet as at 31st March 2012, the a....
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.... He observed, unless the Assessing Officer is able to determine any outstanding balance which is not recorded in the books of account, it is not possible to decide whether any addition is called for or not. He observed, the assessee being an exporter it is possible that the details given to the Bank may have been given with the incorrect impact of foreign exchange fluctuation. Having held so, learned Commissioner (Appeals) examined the calculation of foreign exchange fluctuation furnished by the assessee and found that the assessee had not properly accounted for the foreign exchange fluctuation in the current assessment year. After examining in details all relevant facts and material as called for from the assessee, learned Commissioner(App....
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....erve, the impugned order of learned Commissioner (Appeals) does not reveal examination of any additional evidence furnished by the assessee. Rather, the order clearly reveals that learned Commissioner (Appeals) has rendered a factual finding after conducting a proper enquiry with reference to assessee's claim and such enquiry was conducted in pursuance to the power conferred under the statute. That being the case, the contention raised by the Department with regard to violation of rule 46A is unacceptable. Moreover, the Department has failed to controvert the factual finding rendered by the learned Commissioner (Appeals) with regard to the actual difference in the closing balance of sundry debtors which has been arrived at Rs. 1,40,95,257.....
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....aid statement it was stated though the payment of salary and interest was not provided in the partnership deed, however, it was paid to the partners as per mutual understanding. Thus, the Assessing Officer observed that the amended partnership deed cannot be accepted considering the statement recorded at the time of survey operation. Further, the Assessing Officer also raised doubt over the authenticity of the amended partnership deed on the basis of date of the stamp paper and the name in which it was purchased. Accordingly, he disallowed the payment of salary and interest. Challenging the disallowance made by the Assessing Officer assessee preferred appeal before the first appellate authority. 10. Learned Commissioner (Appeals) after con....