2018 (4) TMI 1698

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....Assessee is into hospitality business, filed return on 29.09.2010 declaring loss of Rs..21,11,14,381/-. Assessment was completed on 12.02.2013 determining the loss at Rs..20,82,13,910/-. In the course of completion of assessment, the Assessing Officer based on the AIR information noticed that assessee received commission or brokerage amounting to Rs..34,03,733/- as on 31.03.2003 from various parties. Assessee was asked to reconcile its receipts with AIR information. However, with the observation that the assessee not able to reconcile the difference agreed for the addition the Assessing Officer added the said amount of Rs..29,00,474/- as income of the assessee. 4. On appeal Ld.CIT(A) sustained the addition observing that assessee was not a....

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.... of the percentage where the unreconciled transactions it is only to the extent of 4.76% which is less than 5% and reconciled transactions are to the extent of 95%. Ld. Counsel for the assessee submitted that even for the reconciliation of theses remaining 5% of the transactions the assessee requested the Assessing Officer to provide necessary data so as to enabling the assessee to reconcile the alleged difference. But however the Assessing Officer completely failed to provide the data nor examined the parties to know whether there is really a difference as alleged. Therefore, he submitted that in the absence of any information with the Assessing Officer, simply relying on the AIR information no addition can be made. He placed reliance on t....

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....vailable before the Assessing Officer to indicate that assessee has received income more than what is declared in Profit & Loss account. It is also a fact on record that in course of hearing of appeal, assessee has reconciled 161 un-reconciled entries by furnishing all necessary details. It is not the case of the Department that the information / details submitted by the assessee in respect of unreconciled entries are not genuine or unbelievable. Therefore, when the learned Commissioner (Appeals) has directed the Assessing Officer to verify the reconciliation of entries by examining the details submitted by the assessee, there is no reason why the Department should be aggrieved. Prima-facie, as could be seen, the learned Commissioner (Appea....