2021 (11) TMI 314

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....43(3) of the Income Tax Act, 1961 [hereinafter referred to as the "Act"], dated 28.12.2016. 2. Grounds of appeal raised by the assessee are as follows: "1. Ld. CIT(A) has erred in law and on facts to confirm addition of Rs. 17,21,255/- u/s. 69C of the IT Act made by the Dy CIT ignoring the fact that the assessee has already shown purchases of share in his return of income for AY. 2014-15. He further erred in not considering the assessee's submission made in appeal as well as in assessment proceedings and in remand proceedings. 2. Ld. CIT(A) has erred in law and on facts to confirm AO's addition of Rs. 17,21,255/- by overlooking the fact that the books of a/c of the assessee are accepted and provisions of Section 145(3) was not ....

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....peal. 5. Shri Rajesh Upadhyay, Learned Counsel for the assessee, begins by pointing out that learned CIT(A) as well as assessing officer has heavily relied upon an audit report dated 29/09/2014, which is placed at Page No. 80 to 93 of paper book. As opening and closing balance of shares as on 31/03/2013 and 31/03/2014 have been reported at Rs. 35,71,128/- in balance sheet as well as in Profit and loss account at Page no. 84 and 85. The assessing officer held that purchases of Rs. 17,21,255/- was unexplained due to want of source. The ld. Counsel pointed out that it was explained to the AO and CIT(A) that the assessee was in need of audit report in the Month of September 2014 for some purposes. At that time, demat account with HDFC Bank Ltd....

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....that assessee has raised two grounds, both are interconnected and relate to addition of Rs. 17,21,255/- made u/s. 69C of the Act in respect of purchase of shares. The AO has stated relevant facts as well as his findings at Para no. 4 to 4.4 at Page No. 2 and 3 of his assessment order. At Para No. 4.4, assessing officer concluded that: "The assessee had not submitted any details with regard to purchase of shares. The source of payment made towards purchases is also not submitted. Thus, purchase of Rs. 17,21,255/- remains unexplained. Therefore a sum of Rs. 17,21,255/- is considered as unexplained u/s. 69C of the Act and added to the total income." 8. On appeal, Ld. CIT(A) has confirmed the action of the assessing officer. Now the assessee....

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.... Page No. 76 of the paper book. It is a copy of demat account with ISE Securities and Services Ltd. In this document, transactions with shares are appearing. All transactions are through debit and credit on the basis of Normal Trade Bills except a transaction of Rs. 12,101.11 dated 30/12/2013 which is a cheque entry. On Page No. 91 of paper book, which is a portion of schedules of audit report dated 29/09/2014. A last item on Page no. 91 of paper book, is a balance with ISE Securities and Services Ltd. The same is reported at Rs. 904/- as on 31.03.2013. The said balance coupled with a cheque entry dated 30/12/2013 at Rs. 12,101.11, the total comes to Rs. 13,005.11(Rs. 12,101.11+904), which is available being a balance as on 31/03/2014. The ....