TaxTMI 
TaxTMI 
2026 (9) TMI 1532
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..... The background facts leading to present appeal are as under: (i) The assessee-firm named "Usha Jewellers" filed return of income of AY 2017-18 declaring a total income of Rs. 2,40,620/-. The case of assessee was selected for scrutiny assessment and finally, the Ld. AO completed assessment vide assessment-order dated 09.12.2019 after making an addition of Rs. 31,69,500/- u/s. 69A on account unexplained cash deposits in Bank A/c No. 041602000000496 with Indian Overseas Bank on 10.11.2016, 11.11.2016 and 22.11.2016 (i.e. during demonetization period) and raised a demand of Rs. 34,44,144/-. Precisely, the said addition was related to the undisclosed income found during survey u/s. 133A conducted by tax authorities on 20.02.2018 at the premise of "Usha Jewellers". (ii) Subsequently, the assessee filed application dated 06.11.2023 u/s. 154 to the Ld. AO. The assessee submitted that the partnership firm "Usha Jewellers" was dissolved on 31.10.2016 and w.e.f. 01.11.2016, the said concern was carried on by "Shri Harshukbhai Parshottambhai Soni (ABKPS9762J)" as proprietor-individual. It was further submitted that the issue of impugned deposits in bank a/c was already cove....
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.... material available on records. There is no mistake being apparent from the records. Therefore, the claim of the assessee regarding the rectification of addition made for unexplained cash deposits of Rs. 31,69,500/- is not covered under the preview of the section 154 of the Act. This office has no domain u/s.154 of the Act over deletion of addition made of Rs. 31,69,500/- in the assessment order dated 09.12.2019 for the year under consideration. 5. In view of the above, your application u/s. 154 of the I.T. Act is hereby rejected and requested to pay the total outstanding demand of Rs. 36,88,987 at the earliest." 5.3 The appellant is in appeal against the rectification order dated 08.12.2023. The appellant during the appeal proceedings has furnished a written submission along with paper book. The same was perused and it is seen that the appellant has stated that the appellant is a partnership, and has been dissolved on 31.10.2016. This is informed to the department on 21.11.2016 vide letter dated 14.11.2016. After the dissolution, the business under the same name was continued as proprietorship concern of Shri Harsukh P Soni, one of the erstwhile partner. The appe....
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....ecord of the Order u/s. 144 dated 09.12.2019. The impugned order clearly records the same and the assessed income is same as already determined in the assessment order passed under section 144 dated 09.12.2019. 5.7 However, from the grounds of appeal and statement of facts filed in Form No. 35, it is evident that the appellant has primarily challenged the addition made in the assessment proceedings u/s. 144 dated 09.12.2019 contending that the addition made in the appellants hand is same as the income disclosed in survey in the hands of the partner Shri Harsukh P Soni and the same is mistake apparent from record and it is to be deleted u/s. 154. These grounds relate the addition made in the original assessment order and the appellant has not responded either before the Ld.AO nor filed any appeal against the assessment order u/s. 144 dated 09.12.2019. 5.8 In view of the above it is held that in an appeal filed against an order under section 154, the appellate authority is empowered to examine only the correctness of the rectification order and the issues arising there from and cannot adjudicate upon matters forming part of a separate assessment order passed under s....
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....book of "Usha Jewellers", proprietorship concern, for the period 01.11.2016 to 31.03.2017 is placed at Pages 22-30 of Paper-Book wherein the entries of undisclosed income in the form of cash and deposit of same into bank a/c are clearly noted on respective dates of 10.11.2016, 11.11.2016 and 22.11.2016. Therefore, the impugned cash deposits in bank a/c were undisclosed income of proprietary concern of "Harsukhbhai Parshottam Bhai Soni". (iv) Fourthly, Ld. AR carried us to Pages 31-36 of Paper-Book where the scrutiny assessment-order dated 27.12.2019 of "Harsukhbhai Parshottam Bhai Soni" passed u/s. 143(3) is placed. Ld. AR referred Paras 3, 3.1, 3.2 and final para 4 of said assessment-order in which the Ld. AO has given the details of the impugned deposits of Rs. 31,69,500/- made in bank a/c on 10.11.2016, 11.11.2016 and 22.11.2016; the survey action carried out u/s. 133A on 20.02.2018; the details of the statement of "Harsukhbhai Parshottam Bhai Soni" recorded on 20.02.2018 and finally the undisclosed income of Rs. 31,69,500/- declared by "Harsukhbhai Parshottam Bhai Soni" in the return. The Ld. AR pointed out that the AO has accepted the undisclosed income declared by "H....
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....assessed as undisclosed income in the hands of "Shri Harsukhbhai Parshottambhai Soni". 8. On a careful consideration of the material available on record, we find that the assessee-firm "Usha Jewellers" stood dissolved on 31.10.2016 and thereafter the concern "Usha Jewellers" was continued and carried as a proprietorship concern of "Shri Harsukhbhai Parshottambhai Soni" w.e.f. 01.11.2016. The impugned cash deposits were admittedly made on 10.11.2016, 11.11.2016 and 22.11.2016, i.e. after dissolution of the assessee-firm. The separate books of account maintained for the assessee-firm and the proprietorship concern further corroborate this position. Significantly, the scrutiny assessment-order dated 27.12.2019 passed u/s. 143(3) in the case of "Shri Harsukhbhai Parshottambhai Soni" specifically records the impugned deposits of Rs. 31,69,500/-; the survey conducted u/s. 133A; and the disclosure of the said amount as undisclosed income by "Shri Harsukhbhai Parshottambhai Soni". The Ld. AO accepted the said disclosure in substance, with the limited variation that the tax was charged at the rate prescribed u/s. 115BBE. Thus, the same income of Rs. 31,69,500/- stands assessed in the han....