TaxTMI 
TaxTMI 
2023 (9) TMI 1415
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.... by Assessing Officer u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), dated 31.08.2017. 2. At the outset, I note that appeal filed by the assessee, for assessment year (AY) 2010-11, is barred by limitation by eighteen (18) days. Learned Counsel for the assessee, has moved a petition, for condonation of delay and explained the reasons for delay. The ld Counsel stated that assessee had instructed his advocate/CA to take care of income tax matters, however the consultant did not pay the adequate attention, therefore because of the mistake committed by the advocate/consultant, the delay has occurred. I have heard both the parties on this preliminary issue. The ld DR for the Revenue opposed the prayer....
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....the CIT(A) or A.O. 4. It is therefore prayed that the above penalty may please be deleted as learned members of the tribunal may deem it proper. 5. Appellant craves leave to add, alter or delete any ground (s) either before or in the course of the hearing of the appeal." 4. The relevant material facts, as culled out from the material on record, are as follows. During the course of assessment proceedings for assessment year (A.Y.) 2010-11, it was observed by the assessing officer that assessee held undisclosed bank account No. 05331530007430 maintained with HDFC Bank, Poddar Arcade Branch Surat. Therefore, Assessing Officer had called for bank statement of the said bank account from the date of opening to till 31.03.2016....
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....d to be credited. Since, the assessee has not explained and replied to the assessee during the assessment proceedings in respect of the entries of the bank statement, therefore Assessing Officer made addition to the tune of Rs.33,65,094/- which includes contra and cancelled cheques. The Ld. Counsel submitted that in the said bank account, there are contra-entries on account of cheque returned/cancelled, the summary of contra-entries in bank statement is reproduced below: 7. Therefore, Ld. Counsel contended that in the assessment order, the Assessing Officer, at the beginning stated that the amount credited in the bank account was to the tune of Rs.23,24,831/-, and the said amount does not include contra/returned cheques. However at the c....
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....k statement. I note that the details of contra-entry/ cancelled cheques, are there in the bank statement and the Assessing Officer could have examined these contra-entries suo moto while making the assessment, however the Assessing Officer has failed to do so. Therefore, just to file a summary of the same bank statement, (which was available in the file the AO), by the assessee, before the Bench, in the form of contraentry (cheque dishonour), is not an additional evidence, as these contra-entries / (cheque dishonour) details were available in the bank statement, which could be examined by the Assessing Officer, during the assessment stage. Therefore, I note that the details of contra-entry/ cancelled cheques were on the file of the Assessin....
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....at entire deposits in bank account cannot be considered for addition. Since the bank account is reflecting deposits as well as withdrawals, hence, there is every likely that bank account has been used for unrecorded business transactions as claimed by the assessee. Therefore, it would be in the interest of justice that only profit eliminate @ 5% is considered for tax of total deposits of Rs. 18,32,079. Therefore, the assessing officer is directed to consider net profit @ 5% of total deposits of Rs.18,32,079 which worked out to Rs. 91,600. Accordingly this addition of Rs.14,76,614 is restricted to Rs. 91,600. This ground is therefore, partly allowed." 12. Based on these facts and circumstances, as narrated above, I direct the Assessing Of....