2026 (4) TMI 1771

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.... revolves the additions namely; addition for sundry creditors u/s.68 at Rs. 11,37,428/-; addition for opening stock at Rs. 4,26,907/-; addition for opening balance in capital account at Rs. 4,36,001/-; unexplained money in the bank account at Rs. 1,16,600/-; and disallowance of deduction u/s.80C of the Act for Tuition Fees at Rs. 50,000/-. 3. Ld. Counsel for the assessee vehemently argued referring to the detailed submissions filed before ld.CIT(A) as well as the paper book running into 137 pages. 4. On the other hand, ld. DR supported the order of ld.CIT(A). 5. I have heard the rival contentions and perused the record placed before me. I observe that the assessee is an individual and did not file the regular return of income for A....

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....nts for A.Y. 2009-10 and A.Y. 2010-11. Tax Audit Report placed at pages 10 to 20 of the paper book has also been examined which indicates that the assessee has shown the sales turnover approximately Rs. 3.94 crore from Jaggery trading and sugar trading. Assessee has also furnished the return in reply to notice u/s.148 of the Act declaring income of Rs. 2,66,000/-. It is also demonstrated that assessee has been carrying out the business activity for last 15-20 years but during the year when the income is below the taxable limit and business activity was at halt the returns have not been furnished. It is also stated that for the subsequent years books of accounts are duly audited and returns are regularly filed. 7. As regards the addition ....

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....al. However, considering the fact that even after having household withdrawals of Rs. 75,000/- on yearly basis, assessee could have easily saved Rs. 1.50 lakh per year from the income earned during the year which is below the taxable limit, I am of the considered view that the assessee has successfully explained the source of opening capital balance as on 01.04.2014 and the addition made by ld. Assessing Officer for opening capital balance at Rs. 4,36,001/- is uncalled for. Similarly since the addition for opening capital stands deleted, therefore the funds available with the assessee claimed to have been utilized for increasing the stock in hand stands accepted and therefore the addition for unexplained opening stock at Rs. 4,26,907/- is a....