TaxTMI 
TaxTMI 
2023 (5) TMI 308
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....well in law, the learned CIT (Appeals) erred in confirming the order of the AO making addition of Rs.48,00,000/- in aggregate on gross misleading, baseless, unwarranted of facts, arbitrary and perverse observations and hence, liable to be quashed. (3) On the facts and in the circumstances of the case as well in law, the learned CIT (Appeals) erred in confirming the action of the AO in making addition of Rs.48,00,000/- purely on presumptions, assumptions, allegations of undisclosed income based on the materials gathered at the back of the appellant, without providing to the appellant to controvert the same and hence, the action of the AO passing the ordered u/s 144 of the Act is patently in violation of the principles of natural justice and contrary to the provisions of the law and therefore, liable to be annulled in toto. (4) On the facts and in the circumstances of the case as well in law, the learned CIT (Appeals) ought to have found and considered that there is no materials gathered during the search action for the allegation that the appellant has earned the undisclosed income/money for Rs.48,00,000/- during the relevant year and hence, the order of the CIT (Appeals) conf....
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....sessing officer issued notice under section 133(6) to G D Goenka School to furnish admission form, fee paid by the assessee and bifurcation thereof, where the kids of assessee was getting education. In response to such notice, G D Goenka School informed that the assessee has paid fee of Rs. 7,89,800/- for his two sons namely Shivam and Shubham in current financial year in cash only. On perusal of school form, the assessing officer noted that in School admission form, the assessee has mentioned his monthly income as Rs. 4.00 lakhs per months. The assessee and his wife signed a declaration wherein they certified that information given in the admission form are true to their knowledge and belief for incorrect information supplied in the admission form jeopardized selection and enrolment. Thus, the Assessing Officer took his view that assessee was having annual income of Rs.48.00 lakhs per annum, since the Assessing Officer already made addition of Rs.9,35,200/- accordingly set off of such addition, and accordingly amount of Rs.38,64,800/- ( 48,00,000 - 9,35,200) was treated as unexplained money under section 69A of the Act. 4. Aggrieved by the addition in the assessment order, the as....
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....y other source of income or any tangible material so as to establish that the explanation to the nature of source of the income of very business activity, is for the first time to evade the tax or concealed the income. 5. The Ld. CIT(A) after considering the submission of assessee upheld both the additions. On the disallowance of commission income, the Ld. CIT(A) held that assessee failed to disclose a single party from whom the diamond was claim, purchase or sold but no record of any consigner sale was found during the search not a single stock was found. No evidence in the form of percentage of commission or any agreement is produced. Thus, the Ld. CIT(A) concurred with the disallowance made by the Assessing Officer. On the addition of section 69A, the Ld. CIT(A) held that the assessee has not disclosed his true business income or source of income. The assessee is maintained high standard of living. The ward of assessee are admitted in a very costlier school at Surat. The Ld. CIT(A) also relied on his observation that assessee is having a TV and movie-kit for valuation of Rs.1.46 lakh as discussed in the earlier paragraph. Further three luxurious cars were found park at the park....
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....50/-, Vehicle Expenses of Rs.30,826/-, Bank Charges of Rs.21/-, Bank Loan Interest Expenses Rs.1283/-, Accountant Fee of Rs.1500/-, Advocate Fee of Rs.500/-, Motorcar Depreciation of Rs.30,889/- and Motorcycle Depreciation of Rs.6560/-. The assessing officer without doubting the expenses incurred for earning commission income treated the said commission income as an unexplained cash credit. No adverse evidence was brought on record. The assessee furnished available address of the purchaser and seller. No investigation against those parties on available address was carried out. Moreover, the assessing officer nowhere in the assessment order recorded that any incriminating material for non-genuine commission income was seized during the search carried out on the premises of assessee. Further, we have noted that similar addition was made against the assessee for A.Y. 2007-08 to 2010-11 and on appeal before the Tribunal, the Co-ordinate Bench deleted additions/ reverse the treatment in ITA No.83 to 86/AHD/2017 dated 14.05.2019. The Co-ordinate Bench further held in the order dated 14.05.2019 that no incriminating material was found during the course of search to make addition under sec....
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....red under section 133(6) of the Act. The information was gathered at the back of assessee. The ld. AR of the assessee submits that it is settled position under law, if assessment is being completed on the basis of search, there is no place of any presumption, but it must be basis of incriminating material. The Assessing Officer gathered information directly from the school, thereto at the back of assessee. The assessee has incurred educational expenses of Rs.4,82,800/- as shown in the return of income. The lower authorities has not proved anything contrary to the explanation furnished by the assessee. The Ld. AR of the assessee a close reading of reply given by assessee explained to Q,.No.5, replied that household expense of the assessee are incurred by his brother for whole of the family which is at Rs.14 lakh. The brother of assessee is also within the jurisdiction of this Assessing Officer. The Assessing Officer himself accepted the household expense incurred by all other family members. The Assessing Officer arbitrarily and prejudicially presumed that assessee earned Rs.4.00 lakh per month as undisclosed income merely on the basis of information gathered at the back of assessee....
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....sal of this ground of appeal. 12. We have considered the rival submission of the parties and have gone through the order of lower authorities. It is also deliberated on the various case laws relied by the ld AR for the assessee. We find that the assessing officer made estimated the income of assessee solely on the basis of school admissions form of his children, wherein the assessee filled up his monthly income of Rs. 4.00 lakhs per month. Before, ld CIT(A) the assessee explained that the entry on the school admission form was made only to secure admission of his children and that in the search no tangible material or evidence was found that the assessee has unaccounted income. The ld CIT(A) discarded the contention of the assessee by taking view that the assessee is not showing his true source of income and avoid his examination under section 131 and that his house hold expenses are very much. Before us, the ld AR for the assessee vehemently submitted that the Assessing Officer solely relied upon the information gathered under section 133(6) gathered at the back of assessee. And that if assessment is being completed on the basis of search, there is no place of any presumption, bu....