2024 (7) TMI 1482

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....ed/unreconciled deposits of Rs. 23,25,802/-. 3. Ld. Counsel for the assessee has taken me through the relevant facts of the case as well as the paper book containing 84 pages. The crux of his argument are that in the first round of proceeding carried out under section 143(3) of the Act, the estimated addition of 21% was made for alleged difference of Rs. 34,45,820/- between the deposits appearing in the Bank statement, vis-à-vis the books of account. The assessee carried the matter in appeal before the ld. CIT(Appeals) and succeeded, but before passing of the order by ld. CIT(Appeals), ld. PCIT carried out the revisionary proceedings and directed the ld. Assessing Officer to reframe the assessment by not estimating the addition of....

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....e assessee preferred appeal before the ld. CIT(Appeals), but in the meantime revisionary proceedings were carried out by the ld. PCIT and vide order dated 13.03.2018 passed under section 263 of the Act, directions were given to ld. Assessing Officer to recompute the income without estimating the profit and make the total addition of the alleged difference. In compliance, ld. Assessing Officer framed the assessment under section 143(3) read with section 263 of the Act and made the addition. The assessee further failed to get relief from the ld. CIT(Appeals) on account of nonappearance. 7. However, against the order passed under section 143(3) of the Act on 22.02.2016, the issue of estimation of income on the alleged difference, ld. CIT(Ap....

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....total   90,00,000   Total (A)   90,26,635 Axis Bank: SI. No. Date Particulars of nature & sources Amount (Rs.) 1 26.10.2012 Cash deposit (sourced from business cash) 20,000 2 18.09.2012 Interest payment by Llyods Commercial Pvt. Ltd. 7,500   Total (B)   27,500 Gross Receipts (A + B): 1 DCB Bank 90,26,635 2 Axis Bank 27,500   Gross 90,54,135 10. From the above it shall be noted that there were credits to the tune of Rs. 90,00,000/- on account of refund of loans & advances and not Rs. 59,01,827/- as wrongly presumed by the AO. The AO had grossly erred in simply assuming that the net decrease in ....

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....nts. This fact is also verifiable from the entry in the bank statement available at Page 68 of Paper Book. 12. Out of the interest of Rs. 1,17,414/- credited in P&L A/c, the appellant had only received / realized interest of Rs. 7,500/- from M/s Llyod Commercial Pvt. Ltd. and that the balance interest was outstanding and receivable. The AO however wrongly assumed that the entire interest was realized which is ex-facie erroneous. 13. In view of the above details and facts, it shall thus be noted that the receipts as per books of accounts was Rs. 90,54,135/- viz., (a) refund of loans & advances of Rs. 90,00,000/-, (b) income tax refund of Rs. 26,635/-, (c) deposit out of cash balance of Rs. 20,000/- and (d) receipt of intere....