2021 (8) TMI 1096

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....come Tax Act, 1961. 2. The assessee in the present is a company which is engaged in the business of wholesale trading. The return of income for the year under consideration was filed by it on 31.03.2017declaring atotal income of Rs. 48,550/-. Although the said return was initially processed by the AO u/s 143(1) of the Act, it was subsequently selected for scrutiny through CASS. During the course of assessment proceedings, the assessee was required by the AO to explain the source of cash in hand of Rs. 29,87,730/- appearing in the balance sheet as on 31.03.2015. In reply, the main source as unexplained on behalf of the assessee firm was the contribution made by its partners towards capital accounts. The details of the same were also furni....

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....ations of the AO. In fact, when the AO pointed out the discrepancies no explanation was furnished by the appellant before the AO. Thus the difference of Rs. 2,69,013/- remains unexplained and the action of the AO is found to be justified. The other issues relates to disallowance of a sum of Rs. 24,00,000/- by invoking section 68 of the Act. I find that the appellant's accounts are audited and addition is made purely on estimate basis without any specific findings. I find that all entries are reflected in the regular books of accounts and confirmation of partners has also been filed along with their Income Tax Return and computation sheet and Balance Sheet. I find that the AO has not pointed out any defect in the submissions made by....