TaxTMI 
TaxTMI 
2025 (4) TMI 2215
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....Tax Act, 1961, is bad in law. 3. Because the Ld. CIT(A) has failed to know about the facts and circumstances of the case, and has arbitrarily give the decision for addition of Rs. 31,52,022/- therefore is bad in law and liable to deleted." 2. The appeal is barred by limitation by 53 days. The assessee has filed an application seeking condonation of delay in filing of this appeal. The application for condonation of delay is supported by an affidavit of the assessee. The Ld. Sr. Departmental Representative for Revenue did not express any objection to the delay being condoned. Therefore, we condone the delay in filing of this appeal and admit the appeal for decision on merits. 3. In this case, assessment order dated 29/03/2015 was passed by the Assessing Officer ("AO", for short), u/s 143(3) of the Income Tax Act, 1961 ("the Act", for short) whereby the assessee's total income was assessed at Rs. 1,17,40,920/-. In the aforesaid assessment order, an addition amounting to Rs. 31,52,022/- on account of net profit was made by the Assessing Officer. Further additions of Rs. 24,91,996/- on account of undisclosed income in the bank account; addition of Rs. 4,41,902/- on accoun....
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....ments, thus, receipts and expenses of appellant are unverifiable. Further, the AO contended that books of accounts and bills and vouchers were not produced during assessment proceedings. c. In view of these facts the AO rejected the books of accounts u/s 145(3) and estimated the Net Profit of appellant. Net Profit from supply of material was estimated @ 1.5% ie. Rs. 16,48,414/- (1.5% of Rs. 109894290). Net Profit from contract work was estimated @ 5 % ie. Rs. 66,59,426/- (5% of Rs. 13,31,88,534/-). Thus, total business income of appellant was estimated at Rs. 83,07,840/- as against Rs. 51,55,818/- shown by the appellant. Accordingly, an addition of Rs. 31,52,022/- was made to total income of appellant. d. AO noted that as per ITS statement the appellant has made three time deposits of Rs. 12,00,000/- each with HDFC Bank Ltd. Interest on these time deposits is also shown in AS26. However, the appellant has shown only one time deposit of Rs. 12,00,000/- in Balance Sheet and Interest Income was not shown in the return filed. The appellant contended that only one time deposit of Rs. 12,00,000/- has been made with HDFC Bank. The AO did not accept the contention of AO a....
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....policy no. 14869856 had Insurance premium of Rs. 1,99,999/- p.a. and same was paid by appellant out of its Savings Bank account on 02.01.2014, This premium is not shown in P & L account as expense, c. In view of the above facts that appellant had paid these Insurance premium from his savings bank account and not debited the same to P & L account, therefore, the addition of Rs. 2,19,999/- is not sustainable and is hereby deleted. Ground of appeal no. 4 is allowed. 7.3 Ground of appeal no. 2 - Addition of Rs. 24,91,996/-: a. AO noted that as per ITS statement the appellant has made three time deposits of Rs. 12,00,000/- each with HDFC Bank Ltd. Interest on these time deposits is also shown in AS26. However, the appellant has shown only one time deposit of Rs. 12,00,000/- in Balance Sheet and Interest Income was not shown in return filed. The appellant contended that only one time deposit of Rs. 12,00,000/- has been made with HDFC Bank. The AO did not accept the contention of AO and treated two time deposits of Rs. 24,00,000/- (2 * Rs. 12,00,000/-) as made from undisclosed sources and Interest Income of Rs. 91,996/- on these Time Deposits was added to total ....
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....e parties or revision of TDS return by the parties. The appellant claimed that it has shown TDS claimed of Rs. 1,89,747/- in the ITR filed. However, after revision/ delay in filing of TDS returns by various parties the TDS as per From 26AS works out to Rs. 3,26,069/- from Contract receipts and Rs. 11,929/- from FDR Interest. The difference of TDS of Rs. 1,48,251/- as per AS-26 and not claimed by the appellant mainly relates to the contract receipts of Rs. 11,18,04,932/- not reflected in AS-26 (Rs. 13,31,88,508/- shown in ITR - Rs. 2,13,83,573/- shown in AS-26). iii, Thus, the conclusion of AO that contract receipts of Rs. 88,38,050/- have not been reflected by AO in ITER is not correct as these contract receipts are covered by the difference of contract receipts of Rs. 11,18,04,932/- (As per ITR - As per 26AS). Thus, the addition of Rs. 88,38,050/- to turnover of appellant would tantamount to double addition of contract receipts. Consequently, the addition of Net Profit of Rs. 4,41,902/- would tantamount to double addition of income. c. In view of the facts outlined in Para 8.1 (b)(i) to 8.1 (b) (iii) above, the addition of Rs. 4,41,902/- is not sustainable and is....
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....llowing case laws: i. DCIT Gurgaon vs. JSL Architecture of Han'ble ITAT, Delhi Bench. ii, GVDI vs. DCIT (2014) 43 taxmann.com 246 (Madras High Court) iii, CIT vs, Anand Kumar Modi (2014) 44 taxmann.com 21 (Jharkhand High Court) iv. Century Tiles Ltd. vs. JCIT (2014) 51 taxmann.com 515 (Ahmedabad). c. The market completion is very high due to which there is decline in Net Profit. d. Comparable figures of NP were given for AY 2009-10 till AY 2013-14. 9.4 Finding on ground of appeal no. 1; a. The AO in Para 2 of the assessment order has clearly oak hat "Neither the books of accounts nor any supporting bills/vouchers have been produce or verification. In absence of any of the documents to support the profit declared, the authenticity of book results is highly doubtful", It is further mentioned in Para 3 that "the books of accounts may pave been audited but if not produced for examination, their authenticity cannot be verified". In Para 4 the AO has mentioned that "Without any supporting documents, neither the receipts nor the expenses of the assessee are open to verification. In view of these facts I have ....