TaxTMI 
TaxTMI 
2022 (3) TMI 435
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.... the assessment order passed by the Income Tax Officer, Ward-7(2), Hyderabad, for the assessment year 2007-08 under the Income Tax Act, 1961, is contrary to law, against the weight of evidence and probabilities of the case. 2. That the Income Tax Officer who passed the assessment order under Section 143(3) of the Income Tax Act for the return of income filed on 09.06.2008 for which the one year period prescribed under the Income Tax Act, expires by 08.06.2009. The Income Tax Officer admitted in the assessment order that first time issued notice on 22.09.2009 is ex-facie barred by limitation and have no authority to assess the petitioner for the assessment year 2007-08. 3. The Income Tax Officer who borrows the amendment for extension pe....
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....others was a registered instrument and the said gift deed was executed by his real brothers. The petitioner have produced the Xerox copy of the registered gift instrument which the Income Tax Officer did not consider and added to the income of the assessee. The manner and method under which the addition have been made are quite arbitrary and illegal one. 6. The method and manner in which the assessment completed by the assessment order is vindictive in nature and made up his mind to add the above said sums as income without conducting any verification or enquiry is quite contrary to law. The Income Tax Officer ought to have verified true nature of the receipts before venturing to add the above said additions. Thus the order of the Income ....
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.... on account of bank deposits, during the course of assessment proceedings, the Assessing Officer asked the assessee filed details of bank accounts held by the assessee. Though the assessee furnished details of accounts with Sri. A.P. Mahesh co-operative bank and HDFC bank, he did not mention anything about the account maintained with the Andhra Bank, Chandanagar branch. However, subsequently the assessee filed the copy of the bank account with Andhra Bank, Chandanagar and he tried to explain the sources for deposits in that account as the sale proceeds of the business and also withdrawals from HDFC bank. It was claimed that the sale proceeds were Rs. 15,16,414/- and the cash deposits during the relevant period comes to Rs. 10,12,500/-. The ....
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....and perused the material on record as well as gone through the orders of revenue authorities. It is observed that there is no dispute that the assessee has declared his income u/s 44AF of the Act, which has been accepted by the revenue authorities and turnovers have also been accepted as per section 44AF of the Act. Considering the submissions of the ld. AR of the assessee that the deposits are from out of the retail sales and from out of the opening capital and cash balances brought forward from the earlier years and inter bank deposits, we restrict the addition to 10% i.e. Rs. 1,01,251/- as against the addition of Rs. 10,12,510/- made by the AO on account bank deposits. Thus, this ground of the assessee is partly allowed. 7. As regards g....
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....reas the amount recorded in the financial statement for the year ended 31st March, 2007. He, therefore, pointed out that how the assessee can make entry before executing the gift deed and submitted that the assessee was unable to explain the gift received properly before the lower authorities. He further submitted that the value of the property has been recorded more than the gifted amount. 7.4 We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. On perusal of the financial statements, we find that for the FY ended 31/03/2007, the assessee has credited gift amount in his capital account and correspondingly effect has been given on the assets side in the balan....