2019 (7) TMI 422

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....ncome of Rs. 1,87,900/- besides agricultural income of Rs. 1,80,000/-. The assessee received income from interest receipts. The case of the assessee is selected for scrutiny and assessment was completed by making an addition of Rs. 17,84,920/- to the income returned under the head 'income from business and profession'. During the course of assessment proceedings, the Assessing Officer has noticed that the assessee had admitted interest receipt of Rs. 1,87,902/-, by which he filed statement of interest account, personal account, profit & loss account and balance sheet. It was noticed by the Assessing Officer that the assessee did the business of commodity share broking through Aditya Birla Commodities, as per the CIB data. The Assessing Offi....

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.... income without deducting the loss of Rs. 23,67,580/-. I submit that I have sustained huge loss in the business and sold my agricultural lands also to clear the debts I have made. My wife has given me an amount of Ps.16,00,000/- to clear the dues which was given to her by her mother considering the financial difficulty of my family. I am filling herewith an affidavit from her mother Smt. Chllikuri Subba Lakshmi confirming the amount given to my wife. I submit that even if the loss is not considered the amount available which was taken from my wife amounting to Rs. 16,00,000/- should be given credit before considering the peak credit of Rs. 17,84,920/-. I humbly submit before your honour that while considering the peak credit, the A....

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....t in respect of commodity share broking, he has suffered loss therefore, same is not claimed in the return of income. Before the ld. CIT(A) it was submitted that his wife has given cash, amounting to Rs. 16.00 lakhs, which was received from her mother and submitted that same may be considered. We find that in the first instance, his case before the Assessing Officer is that due to loss, transaction is not reflected in the return of income. At appellate stage, he changed his version completely and submitted that his wife has received gift from her mother and the same is given to the assessee. Inconsistent plea taken by the assessee cannot be accepted. The ld. CIT(A) has examined the alternative plea of Rs. 16.00 lakhs received from his wi....

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....he same was filed belatedly. The loss sustained was covered by sale of agriculture land and money received from his wife at Rs. 16,00,000/- claimed to have been given by her mother. An affidavit dated 18-08-2017 of Chilukuri Subba Lakshmi was filed by the appellant. In view of this, the appellant requested to give credit to the amount available against the peak worked out by the Assessing Officer. The appellant also requested that once the peak credit is taken as income, loss of share business should be allowed. The appellant vide the additional submissions dated 10-02-2018, stated that the share broking loss has to be allowed against the peak credit. The appellant also filed copy of bank account, copy of brokers account, ....

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....0/- from his wife. The Assessing Officer considering all these things stated that the claim of cash receipt from wife and filing of affidavit is an afterthought and contrary to facts available on record. The appellant was made available the copy of the report of the Assessing Officer along with enclosure for his counter comments. The same were submitted vide letter dated 21-03-2018 as mentioned supra. The appellant contends that the conclusion and the report of the Assessing Officer are not based on the facts. The appellant concedes that he has incurred loss of Rs. 23,67,580/- but not claimed the same. The appellant contends that without considering the material facts, the Assessing Officer added the peak credit and reques....

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....esponse to the query raised by the Assessing Officer on share business. The Assessing Officer has considered the return and the books of accounts connected to the income reflected. The appellant categorically stated that he has incurred loss but not claimed the same in the return. The appellant has also stated that separate books were maintained. The argument of the appellant is that the loss from the share trading account which could not be claimed as the return was filed belatedly should be allowed as peak credit was taken as income. If the argument of the appellant is accepted, then it works against the statutory provision of Sec.139(3) of the Act which mandates the filing of return i.e. loss return within the time allowed. The ....