TaxTMI 
TaxTMI 
2022 (8) TMI 899
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....2-13. In ITA No. 476/Mum/2021, the Revenue has raised the following grounds of appeal: 1. "Whether Ld. CIT(A) is right in law and facts to have not exercised powers that are co-terminus with that of the Assessing Officer to examine the issue and not pass order on general hypothesis" 2 Whether the Ld.CIT(A) is right in law and facts in not invoking the applicability of section 41(1) for cessation of liability since the fact that the assessee has not been able to produce confirmation for sundry creditors outstanding" 3 The Appellant prays that the order of the CIT(Appeals) on the above ground be set aside and that of the Assessing Officer be restored. 4. The Appellant craves leave to amend or alter any grou....
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....ayers/Receiver's books and disclosed. The same were reported in the Financial Statements of all concerned entities for all these years, where the management and ownership are common/same and nowhere/never adverse view was taken by the Assessing authorities all these years. 4. The Hon. Commissioner of Income Tax(A) has erred on facts and in law in ignoring ground realities that the appellant do not have any holiday and the work has to be carried out even on Sundays and Bank holidays and the Income Tax Act, itself allows exception in such cases. 5. The Hon. Commissioner of Income Tax (A) has erred on facts and in law overlooking several judicial pronouncements upholding the fact that it is a common trading practice to tr....
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....me at Rs. 1,32,56,306/- The case was selected for scrutiny under CASS and statutory notices u/s 143(2) and 142(1) dated 05-08-2013 were issued and duly served. The assessee is into the business of civil engineers and contractors. 4. During the year under consideration assessee has declare turn over of Rs 22,13,33,097/- and other income of Rs 13,28,275/- over which it has declared net profit of Rs 10796682/-. During the assessment proceedings A.O. made adhoc additions on account of sundry creditors for the purchase of material @ 20% amounting to Rs 11241367/-. Same adhoc addition was made @20% on account of sundry creditors for expenses amounting to Rs 30246494/-. She further made additions of Rs 7550000/- on account of cash receipts and ....
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....d have asked for the reconciliation of this difference. The reconciliation that was provided by the appellant to this office was sent to the AO for remand report. In his remand report, dated 23.08.2019 that has been duly forwarded by the Range Head vide letter of even date, the AO has not made any comment on this reconciliation filed by the appellant. I have also gone through the reconciliation and hold that the observation of the AO that the Balance Sheet does not reflect the true affairs of the state of the appellant as the opening balance of one item as filed by the appellant does not match with the opening balance of that item in the Balance Sheet is not correct. The second issue arising out of the addition made by the AO is the amount ....
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.... with reference to the disallowances discussed supra and the findings of A.O where she justified these additions on account of following issues/deficiencies she found during the assessment proceedings as under: i) Non filing of confirmations of the sundry creditors for purchases ii) Discrepancies in the opening balance as per balance sheet and submissions made by the assessee iii) Balance sheet of the assessee doesn't reflect a true and fair view of its affairs. iv) Notices issued u/s 133(6) were not responded by the parties. 7. We have gone through the order of the A.O., order of the Ld. CIT (A) and submissions of the assessee along with paper -book filed. We have considered the remand report sent to ....
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.... During the year under assessment based on tax auditors report A.O. made an addition of Rs 19,50,000/-and Rs 56,00,000/- as cash receipts and cash payment respectively. We have gone through the form no 3CD (Tax Audit Report) and submissions before the authorities below made by the assessee. We found the tax auditor reported these two items of cash receipt and cash payment shown under the column of loan and deposits accepted during the year and not under the column for disallowances to be made u/s 40A(3). These two transactions are in the nature of amounts taken / paid in cash from sister /associate concerns. As assessee has not claimed amount of Rs. 19,50,000/- and Rs. 56,00,000/- as expense in its Profit & Loss A/c, therefore, it cannot be....