TaxTMI 
TaxTMI 
2021 (4) TMI 1141
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....ad upholding the addition of Rs. 50 lakh as headless deemed income is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned addition. 2.1 The Ld. CITCA) has grievously erred in law and on facts in confirming addition of Rs. 50 lakh as headless deemed income, though the appellant had disclosed the same as undisclosed stock as evident from profit & loss account, stock record etc. 2.2 That in the facts and circumstances of the case as well as in law, the Ld. CIT(A) ought not to have upheld the addition of Rs. 50 lakh as headless deeme....
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.... 50 lacs. During the course of assessment on verification of the return of income for the year under consideration, the Assessing Officer observed that assessee has not shown the income declared during the course of survey action. Therefore, show cause notice was issued to the assessee to explain why the undisclosed income of Rs. 50 lacs not be added to the total income. The assessee explained that the survey action was conducted on 18th December, 2014 which was not the last day of financial year and entry for stock laying with marketing team was not made in the books. The reply of the assessee discussed by the Assessing Officer in the assessment order is reproduced as under:- "2. Regarding discrepancy in stock position, it is submitted ....
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.... the time of survey cannot be considered as unaccounted income and cannot be added to the income of the firm. Also Rs. 50,00,000/- undisclosed income admitted by the partner of the firm has been disclosed in Profit & Loss Account and hence again it cannot be added to the income of the firm." However, the Assessing Officer has not agreed with the submission of the assessee stating that during the course of survey u/s. 133A, the assessee had admitted income of Rs. 50 lacs, hence the same was added to the total income of the assessee. 5. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee holding that assessee has failed to furnish documentary evidences to prove that the stock wo....
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.... income (income tax declaration). The ld. counsel has also submitted that during the year profit to be taxed arrived at Rs. 29,530/- because of financial charges to the amount of Rs. 74,63,173/- debited to the P & L A/c and break up given in schedule 7 of the P & L A/c. In this regard, the ld. counsel has referred page no. 46 of the paper book showing that during the year assessee has incurred bank intserst on cash credit to the amount of Rs. 71,82,273/- and processing charges to the amount of Rs. 2,80,900/-. On the other hand, ld. Departmental Representative has placed reliance on the decision of ld. CIT(A). 7. Heard both the sides and perused the material on record. During the year under consideration survey u/s. 133A of the Act was carr....
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....o the amount of Rs. 74,63,173/-. In support, the assessee has also furnished the audited copies of annual account of the assessee firm during the course of assessment and at the appellate stage. On perusal of the material on record, it is noticed that the lower authorities has not disproved the genuineness of the claim of incurring bank interest/bank charges expenditure during the year by the assessee firm to the amount of Rs. 74,63,173/-. During the course of appellate proceedings, the assessee has also placed reliance on the decision of following judicial pronouncements M/s. Fashion World Vs. ACIT Vide ITA 1634/Ahd/2016 dated 12.02.2010 , DCIT vs. M/s. Shah Khodi Das vide ITA No. 531/Ahd/2008 dated 25.03.2011 and CIT-II vs. Shilpa Dyeing ....
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....red to in section 68 or 69 or section 69A or section 69B or Section 69C or Section 69D. The relevant provisions are produced as under:- "Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D 115BBEE [Where the total income of an assessee- (a) includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C,or section 69D and reflected in the return of income furnished under section 139 or (b) determined by the Assessing Officer includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, if such income is not covered under clause (a) the income-tax payable shall be the aggregate of (i) The a....