TaxTMI 
TaxTMI 
2025 (3) TMI 2209
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.... of Rs. 17,36,59,610/- as unexplained income of the assessee without considering the submission and evidence submitted before the Ld. AO and facts on record. 3. That impugned Assessment order passed by the Ld. AO and Uphold by Ld. CIT(A) is in total violation and infringement of mandatory applicable binding CBDT Circulars Instructions. It was proved before the lower authorities that the transactions in the bank is already recorded in the individual books and the same has been already been assessed and taxed. In spite of this fact, the Ld. AO and the Ld. CIT(A) have erred in taxing the same income doubly once in the hands of the individual and secondly in the hands of the dissolved firm. 4. The assessment has been framed on the dissolved firm which does not exist as such the assessment is bad in law. The observation of the Ld. AO that no information related to the dissolution of the firm has been communicated to the Department is based on wrong footing, since the AO himself in para 3.2(b) has mentioned this fact. 5. The addition maintained without appreciating the evidence placed on record and without appreciating the facts, merely on the basis of the lett....
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....e of dissolution of firm "as it was not informed", hence operation continued in account with old PAN number i.e. AALFM2899Q. Hence, it is clearly seen that the bank was not intimated at the time of dissolution of firm. During the video conference, with regard to query relating to intimating the department about the dissolution, it was submitted by the A.R that the consultant looking after the case expired in 2020 and not in a position to produce the documents. 3.6 Conclusion drawn: In view of above facts of the case, the amount of Rs. 43,39,610/- remains unexplained and is hereby deemed to be the income of the assessee for the year under consideration in view of provisions of section 69A of the I.T. Act, 1961. The withdrawals at Rs. 16,93,20,000/- are deemed to be unexplained expenses u/s 69C of the Act. Penalty u/s 271AAC of the Act are initiated separately." 3. During first-appeal, the CIT(A) approved the conclusions of AO and upheld addition. 4. Before us, Ld. AR for assessee made following contentions and claimed that the impugned additions made by AO in the hands of assessee firm are not sustainable and must be deleted: (i) That the assessee-firm stands....
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....;ूप में यह व्यवसाय दिनांक 01.01.2010 से प्रारंभ हुआ है। इसके पूर्व निर्धारिती में. मंत्री ब्रदर्स, नीमच में भागीदार थे।" Para 2 of assessment-order dated 04.03.2015 u/s 143(3) for AY 2011-12: "2. निर्धारिती श्री सुरेश चन्द्र मंत्री, प्रो. में. मंत्री ब्रदर्स, नीमच के नाम से कृ....
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....ं इत्यादि एवं बारदाता का मंडी से क्रय विक्रय किया जाता है। Para 2 of assessment-order dated 06.06.2016 u/s 143(3) for AY 2014-15: "2. निर्धारिती श्री सुरेश चन्द्र मंत्री, मंत्री ब्रदर्स दशहरा मैदान नीमच के प्रोप्राइटर हैं। जिसमें अजवाइन, धनिया, कलोजी, मेंथी, रायड&....
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....actions in the books of Shri Suresh Chandra Mantri. 9. We have considered rival submissions of both sides and perused the orders of lower authorities as also the documents held in Paper-Book to which our attention has been drawn. The dispute in present case relates to the addition made by AO on account of cash transactions made in an account with Axis Bank which was standing in the PAN of assessee-firm. The facts are, however, very clear and do not have any ambiguity. The assessee-firm was dissolved w.e.f. 31.12.2009/01.01.2010 and thereafter "Shri Suresh Chandra Mantri", one partner, carried business of assessee firm in the same name. These facts were very much in the knowledge of department as is manifest from as many as four scrutiny-assessment orders of "Shri Suresh Chandra Mantri" re-produced above. In fact, the AO also initiated re-opening proceeding u/s 147 against assessee-firm for immediate preceding AY 2017-18 for the very same reason that there were cash deposits/withdrawals in the Axis Bank in the name and PAN of assessee but ultimately closed the re-opened assessment accepting the dissolution of firm and taking over business by "Shri Suresh Chandra Mantri". The asse....
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....200000879 with AXIS Bank has been reflected. Sh. Suresh Mantri (PAN:AATPM9266B) has refl ected total turnover of Rs. 37.74 crore with G. P. of Rs. 3.13 crore and N. P . of Ra. 14, 63, 870/ -. In view of this, the above information shall be shar ed with JAO concerned having jurisdiction over the case of Sh. Suresh Man tri (PAN: AATPM9266B) to take further necessary action as per the provisio n of law. Further, in view of the above facts of the case, the proceeding s initiated u/s 147/148 in this case of assessee firm M/s Mantri Brothers is hereby closed. Document 2 CA MADHUSUDAN PATIDAR & ASSOCIATES Chartered Accountants 1, Balaji Market, Kamal Chowk, Neemuch 458441 Madhya Pradesh Phone : 8349217609, E-Mail : [email protected] -: TO WHOM SO EVER IT MAY CONCERN :- We have examined the books of A/c of Shri Suresh Chandra Mantri, Neemuch having PAN No. AATPM9266B for the year ended on 31.3.2018 and Axis Bank A/c Statement having Bank A/c No. 513010200000879 and certify that entire transactions as appearing In the said bank A/c statement is duly considered in entirety in audit report of Shri Suresh Chandra Mantri, Neemuch Place: Neemuch Dated: 13/03/2023 UDIN: 234....
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....26AS or cash flow is there, Whatever transactions reported in 26AS pertains to Shri Suresh Chandra Document 4 Mantri PAN AATPM9266B which are recorded in his books of account and reflected in return of total Income filed by him for the assessment year 2018-19. 3. As no return of total income can be filed by the non-existing partnership firm hence no return of total income was filed. However, in compliance of notice under section 148 return of total income was filed at NIL income without going into the legality of the notice (legally notice under section 148 cannot be issued to the dissolved firm and accordingly no assessment can be made in the name of the dissolved firm as well). Copy of ITR-V is attached. Total income as such is NIL. 4 We submit herewith following documents apart from the dissolution deed and documents mentioned herein above :- (a) Confirmation from Axis Bank stating non up-dation of KYC at the time of dissolution and old KYC continued due to delay in submission of information. (b) Document related to Shri Suresh Chandra Mantri PAN AATPM9266B: (I) Copy of ITR and computation for the assessment year 2018-2019. (i) Audit report in Form 3CB -CD issued by Chartered ....