TaxTMI 
TaxTMI 
2021 (10) TMI 735
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....owing substantive grounds in the instant appeal: "i. The Ld. CIT(A), Hyderabad, erred in law and on facts, in not appreciating that the appellant had not been maintaining any regular books of accounts and the alleged balance sheet as on 31.03.2016 was drawn up by the assessee, considering the assets and liabilities available as on 01.4.2015 and 31.3.2016, without any supporting evidences provided for the alleged claim. ii. The Ld. CIT(A), Hyderabad, erred in law and on facts, in not appreciating that the assessee in order to arrive at the stock as on 31.3.2015, adopted the figure of stock available as in F.Y. 2004-05 and the fact that a survey u/s. 133A was conducted on 14.7.2004 in the business premises of the assessee an....
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.... case, the order of Ld. CIT(A)-7, Hyderabad is perverse and deserve to be set aside". 3. We come to the Revenue's twin substantive grievances herein seeking to reverse the CIT(A)'s findings admitting the assessee's agricultural income of Rs. 26 lakhs without filing the revised return along with un-explained stock of Rs. 4,62,87,257/-. The CIT(A)'s relevant detailed discussion to this effect reads as under: "4.3 The above additional evidence/submissions were forwarded vide letter dated 02-08-2019, calling for a remand report from the Assessing Officer and the Assessing Officer vide his letter dated 25-09-2019 forwarded the remand report through Addl. CIT, Range-15, Hyderabad. The contents of the report are as unde....
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....2013. 6. The assessee is given an opportunity to substantiate his claim of showing the capital in the balance sheet and introduction of fresh capital during the year under consideration. 7. During the course of remand report proceedings, with regard to the capital shown at Rs. 22,43,550/-, the assessee submitted that the amount shown as capital at Rs. 22,43,550/- is an inadvertent mistake crept in while uploading the return of income for the A.Y. 2015-16. It is nothing but a loss derived during the year from F 86 O. It has shown at column 38 of the return of income filed for the A.Y. 2015-16. 7.1 The submission of the assessee is verified from the return of income and found correct. Therefore, the ld. CIT(A) is re....
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....4.7.2004 and the department found that there was 15 Kg. of gold jewellery and 96 kg. of silver article as on the date of survey. The modus operandi of the assessee's business is that as and when there is sale of any article, immediately the same weight of ornament will be replaced with new one. Therefore, the quantity of the stock will remain the same. Only there is a fluctuation in the rate, which will be booked as gross profit/gross loss to the profit and loss account. To arrive the opening balance of the capital, the assessee has followed the principle capital = assets - liabilities. 9. With regard to the opening balance of capital of Rs. 5,31,23,790/- for the A.Y. 2016-17, the assessee submitted that the assessee has not ma....
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....sp; 57482178 57482178 9.1 In view of the above reasons, the submissions made by the assessee is verified with the records. The assessee has explained the sources for the additional capital and the opening balance in the capital account with the documentary evidence. Therefore, the ld. CIT(A) is requested to decide the issue on merits. " 4.4. The copy of the remand report submitted by the assessing officer was forwarded to the appellant to submit the explanation vide letter dated 08-11-2019. In response to the remand report, the AR of the appellant vide letter dated 15-11-2019 stated as under: "The only issue in this appeal is with regard to the addition of Rs. 4,62,87,....
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....tire amount of the capital is properly explained. In the remand report, the Assessing Officer mentioned that the assessee explained the sources for the additional capital and the opening balance in the capital account with documentary evidence. In the circumstances, the addition made is not justified. The appellant, therefore, requests the Hon'ble Commissioner of Income Tax (Appeals) to kindly allow the appeal as prayed for." 4.5 I have considered the submissions of the appellant, findings of the Assessing Officer in the assessment order and remand report carefully. The assessing officer after making detailed enquiry during the remand proceedings accepted the claim of the appellant that there was a mistake occurred at ....