2022 (3) TMI 463

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.... (hereinafter called 'the Act'), the AO noticed that the assessee in the audited financial statements for Financial Year 2013-14 (Assessment Year 2014-15) had shown an opening capital of Rs. 3,25,03,430/-. The assessee explained that the opening capital was arrived at from the closing capital balance for Financial Year 2010-11 (Assessment Year 2011-12) and the accretions to the capital during the Financial Year 2011-12 (Assessment Year 2012-13) and the accretions in the Financial Year 2012-13 (Assessment Year 2013-14). The details in this regard given by the assessee in this regard was as follows: Sl. Financial Year Particulars Amount Rs. Amount Rs. 1 2010-2011 The Closing Capital Balance for the Financial Year 20102011 as d....

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....sessment Years 2012-13 to 2013-14 is concerned, the AO observed that the assessee did not file return of income and the partnership firms from which the assessee had shown accretions to his capital account as share of income also did not file returns of income. The working of the opening capital balance as was given by the assessee was not accepted by the AO. 4. It can be seen from the capital balance in the table given above that the assessee was a partner in a partnership firm Sri Lakshmi Venkateshwara Minerals and Sri Lakshmi Venkateshwara Transport and the share of income as well as drawing and maturity proceeds from investments has been shown as accretions to the capital account. According to the AO, since the assessee as well as the ....

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.... assessee filed an application under section 154 of the Act dated 24.01.2017 wherein the assessee pointed out that the assessee's individual return as well as the returns of the partnership firms Sri Lakshmi Venkateshwara Minerals and Sri Lakshmi Venkateshwara Transport for Assessment years 2012-13 and 2013-14 had been filed by the assessee and therefore the additions made for the sole reason that the returns were not filed for the aforesaid stated Assessment Years should be deleted. Copy of the returns filed by the assessee in this regard was also filed along with the application under section 154 of the Act. These returns had been filed on 22.01.2017 after the date of the order dated 30.11.2016 which is the date on which the AO passed....