TaxTMI 
TaxTMI 
2025 (7) TMI 1219
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....eal before us for Assessment Years (AY) 2017-18 & 2018-19 whereas the assessee has filed cross objections against the same. These appeals were heard along with similar appeals for AYs 2014-15 to 2016-17 which has separately been disposed-off by us. The substantial issues are identical. First, we take up revenue's appeal and assessee's cross-objections for AY 2017-18 which arises out of an order passed by learned Commissioner of Income Tax (Appeals)-5, Ludhiana on 29-03-2024 in the matter of an assessment framed by Ld. AO u/s 143(3) of the Act on 28-12-2019. 1.2 The grounds as raised by the revenue read as under:- 1. Whether upon facts and circumstances of the case and in law, the Ld. CIT(A) was justified to treat unaccounted rec....
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....ns given to M/s Triveni Rice Mills during the year under consideration as the assessee failed to substantiate the receipts from M/s Triveni Rice Mills were actually used to male further advances to M/s Triveni Rice Mills. 6. Whether upon the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing benefit of telescoping of Rs. 12,27,430/- as investment in advancing loans to M/s Triveni Rice Mills in the absence of any evidence regarding the same? 7. Whether upon the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition made on account of opening balance shown in the incriminating documents in the name of M/s Triveni Rice Mills as the assessee has faile....
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....circumstances of the case. 1.4 As is evident, the impugned addition stem from survey proceedings on the assessee. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. Proceedings before lower authorities 2.1 The assessee being resident individual has acted as commission agent (Kacha ahrtiya) in his proprietorship concerns. The assessee's business premise was subjected to survey u/s 133A on 07-12-2017 which led to impugned assessment on the assessee. In this year,the additions have been made on the basis of three volumes of cash books and loose papers which contain all transactions of assessee's business either through cheque or in cash. Upon analysis of these cash books, it was found ....
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.... a computer-generated ledger of some entity by the name 'company' whereas the assessee had no correlation with the entity 'company' and the said entity 'company' did not belong to it. There was no mention of the name of the assessee on this document. The assessee also contended that the provisions of Sec.68 could not be invoked since the said amount was neither receipt nor it was found recorded in the regular books of accounts of the assessee. Alternatively, the assessee sought exclusion of opening balance and pleaded for application of peak theory since there was debit and credit entries in the said ledger. The assessee also sought telescoping benefit of business income. 2.4 The Ld. CIT(A) partly accepted these submissions and observed ....
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....reas the corresponding grounds raised in assessee's cross-objection stand partly allowed. 4. So far as the addition of loan allegedly granted to M/s Triveni Rice Mills is concerned, we find that the same has merely been made on the basis of loose sheets without any corroboration thereof. These loose sheets do not bear the name of the assessee or his associated concerns. The loose sheets contain the ledger of M/s Triveni Rice Mills in the books of 'Company'. The Trial balance of this entity by the name 'Company' was also found. However, none of the entry as contained therein has been found matching with the regular books as maintained by the assessee. There is no corroboration of any of the entry by way of third-party investigation. The n....
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....A-14, made addition of cash receipts for Rs. 429.44 Lacs. The interest income as allegedly received from M/s Triveni Rice Mills for Rs. 15.68 Lacs was brought to tax. Another interest income of Rs. 1.59 Lacs as alleged to be received from 4 parties was separately added. The Ld. AO made another addition of Rs. 19.76 Lacs as undisclosed sales on the basis of Pages 41-46 of Annexure A-19. The last addition of Rs. 409.76 Lacs was made on the basis of Trial Balance of the entity 'Company'. 7. Upon further appeal, Ld. CIT(A) estimated income of 6% on receipts of Rs. 429.44 Lacs and restricted the additions to the extent of Rs. 25.76 Lacs. The interest income of Rs. 15.68 Lacs was deleted considering the order of Hon'ble Interim Board of Settle....