TaxTMI 
TaxTMI 
2021 (10) TMI 1000
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.... filing the instant appeal before us. The submissions made by the Ld. AR in explaining the delay as also appearing from the application filed on 03-08-2020 in support of such explanation the delay is due to lock down declared from last week of March, 2020. Though the order impugned was passed on 13-03-2020 but due to lock down declared and continued, it was not possible for the assessee to file the instant appeal within 60 days i.e. on 9th September, 2020 as plea taken by the AR. Hence, the assessee took 34 days more to file the instant appeal upon complying all the formalities. Such stand taken by the assessee seems to be genuine and justified. Moreso, the Ld. DR with all his fairness has also not objected such plea taken by the ld. AR. ....
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....sessee has made investment in the year ending on 31.03.2020 in shares and mutual funds of Rs. 78,37,593/- whereas total investment mentioned in the balance sheet as of Rs. 16,917,243/- and interest expenses of Rs. 6,17,745/- claimed in the P & L A/c, some exempted income was also capitalized in the balance sheet. This requires disallowance of expenses u/s 14A of the Act read with Rule 8D of the Income Tax Rules, 1962 as of the view of the ld. PCIT. This Ground too was not considered by the ld. Assessing Officer and hence show-cause notice was issued upon the assessee to reply the same. The assessee filed the following reply on 17.02.2020 in respect to show-cause notice issued to him : "1) All books of accounts supported by all docu....
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....account. So naturally the said amount remains as receivables, by the assessee from the contractor, as on 31/03/2010, and in the balance sheet, the AUDITOR has reflected the same under the head: "SUNDRY DEPOSIT" 5) That the total of "Sundry Deposit" is Rs. 31.07 lakhs, (Thirty one point zero seven) which contains the amount of Rs. 20.20 lakhs (Twenty point twenty), which is again reflected under the head WIP in the credit of profit and loss account. 6) There is nothing wrong in the accounting entries, and the journal entries in the regular books of accounts, which has been finally drawn out by the Chartered accountant himself and placed under respective heads and the same has been produced and verified and examined by the A....
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....e Act 61, are not satisfied, because the order passed is neither erroneous nor prejudicial to the interest of revenue. 11) That even application of mind by the AO is evident from the assessment records and the AO has arrived at a conclusion after application of mind and conducting enquiry in all respects, so even if the order is short one, it is legally not erroneous. 12) That even if the applicability of section 14A has not been considered in reassessment proceedings, the NET Tax effect is negligible, so the same is not prejudicial to the interest of revenue........." 7. However, such submission of the assessee was not found acceptable and the ld. PCIT ultimately passed orders directing the ld. Assessing Officer to fra....
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....30.08.2017 and 143(2) dated 03.11.2017 also issued and served on the assessee. In response to the above notices, the assessee, himself, appeared from time to time and furnished relevant documents. The case was discussed with him. The documents have been verified and placed on records During the year under question, the assessee was engaged in business activity civil & mechanical contractor. The total income of the assessee is accepted as per income returned which is as under: Return income: Rs. 8,59,845/- Add: exemption claimed: Rs. 1,15,000/- Rs. 9,74.845/- Less exemption allowed: Rs. 1,00,000/- Assessed income: Rs. 8,74,850/- 9. The order passed by the ld. Assessing Office....