TaxTMI 
TaxTMI 
2022 (4) TMI 498
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....(Appeals)- 1, Jabalpur ('CIT(A)' for short) vide order dated 28/3/2019. The assessee's Cross Objection (CO) is supportive. 2. The brief facts of the case are that the assessee, a partner, along with his mother, Vinesh Rajput (VR), in a Jabalpur-based firm, M/s. Speed Point (SP), in the retail business of petroleum products, was observed to have received credits for Rs. 113.50 lacs in his personal account for the relevant previous year. His returned income for the current year being only Rs. 28.76 lacs, the said return was selected for being subject to the verification procedure under the Act. The appeal involves, in the main, various additions made in assessment in respect of these credits, since deleted by the first appellate authority. ....
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....irm, made, with a corresponding debit to his mother's capital account in the said firm on 15.1.2005, i.e., immediately following her death on 14.1.2005, on which date the firm stood therefore dissolved. The accounts of the firm, which became the assessee's proprietorship w.e.f. 15.1.2005, were accordingly prepared for the period 01.04.2014 to 14.1.2005, on which date its' accounts were closed, crediting the interest and the share of profit (for the said period) to each of the two partners, the assessee and VR. The amount of impugned addition (Rs. 64.51 lacs) in fact forms part of Rs. 113.50 lacs, representing the amount credited to the capital account of VR in SP during the year (PB pg. 74). The same, as borne out by the record, is, in the ....
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....ds to be appreciated that it is only by virtue of the Will that the sum stands credited to the assessee. The only issue that could therefore possibly arise is the claim on the said balance of the other claimants, inasmuch as the same may raise doubts as to its genuineness. Sh. Bardia would during hearing, with reference the Will, explain that VR had bequeathed her capital in each of the three different partnership firms being managed by her three sons, as SP by the assessee, thereto. Further, that the Will is undisputed by any of the Class-1 legal heirs. This, we observe, stands also explained before the AO. Under the circumstances, we find no reason to doubt the genuineness of the credit and, accordingly, confirm the deletion, save the sep....
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....ts of SP as on 14.1.2005 (PB pg. 82), the date on which, as afore-stated, the accounts of SP were closed on its' dissolution on account of the death of VR, one of the two partners in the said firm. What does the said difference signify, we fail to understand. None of the entries in the said two accounts, we observe, have been questioned by the AO. In fact, but for the fact at the same stands made explicit by the AO (refer para 10(ii)/page 6 of his order), making the snapshot of the two ledger accounts afore-noted, a part of his order, we would have been disinclined to believe Sh. Bardia that this difference, which carries no meaning, could be the subject matter of an addition, with we also confirming the balance (as on 14.01.2015) of the as....
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....ted to be duly disclosed to the Revenue; in fact, forming part of her regular accounts, interest on which stands duly returned by her, a regular assessee, from year to year. Supporting documents for the same were, however, admitted by Sh. Bardia during hearing to be not furnished before the AO, while the ld. CIT (A), before whom the same were for the first time, admitted and relied upon the same in contravention in rule 46A. Even as we find nothing amiss in the admission of the addition evidence by the ld. CIT(A), being only to substantiate the assessee's claims, which would in fact also stand to be confirmed by/from the bank, his non-providing any opportunity to the AO to examine the same, as mandated under r.46A, particularly considering ....