SATISH KRISHNAKANT MOHOLE,NASHIK vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -1, NASHIK

This appeal is filed by the assessee against the order of the CIT(A)-1, Nashik dated 10.12.2018 for the assessment year 2014-15.

In this appeal, the assessee raised the following effective ground :- “1) The learned CIT(A)-1, Nashik was not justified in confirming the addition of Rs.5,50,000/- made by the A.O.” 3. Briefly stated the relevant facts include that the assessee is an authorized dealer for sale of products of Siemens, Schneider Electric and others. The assessee filed the return of income declaring total income of Rs.42,43,840/-. In scrutiny assessment, the Assessing Officer determined -2- Rs.47,93,840/- and made addition of Rs.5,50,000/-. 4. The related facts of the issue include that the assessee was surveyed u/s 133A of the Act on 06.08.2013. The assessee runs a proprietorship concern in the name and style of M/s. Swati Enterprises. During the survey action, in view of certain entries on the loos sheets, the assessee offered a sum of Rs.5.5 lakh as additional income from the undisclosed sources for the assessment year 2014-15. However, the said amount was not offered while filing the return of income. The Assessing Officer issued a show-cause notice dated 19.12.2016 proposing to make the said amount as additional income of the assessee. In response, the assessee replied vide letter dated 21.12.2016 stating that the discrepancies found out by the Survey Team were accounted at the time of conclusion of the books of account of the assessee. However, rejecting the assessee’s explanation, the Assessing Officer proceeded to make the said amount as addition as per discussion given in para 5.2 of the assessment order. For the sake of completeness, the said para 5.2 of the assessment order is extracted as follows :- “5.2 The submission of the assessee has been perused and duly considered but not acceptable. During survey action, assessee was specifically asked as per loose paper found in survey premises and has entry shows to him amount of Rs.1 lakh against pradip, Rs. 2.5 lakh against Rahul and Rs. 2 lakh against NTPC. In his answer assessee has admitted that these transactions have not recorded in the regular books of accounts and also I am not in a position to reconcile the same. He has also accepted and offer the above said amount of Rs.5.5 lakh as additional income from undisclosed sources for the current year. The assessee has not offered additional income from undisclosed sources in filed original return of income. I therefore, added to the total income of the assessee to the tune of Rs.5,50,000/- as undisclosed income. Penalty proceedings u/s 271(1)(c) initiated separately for concealment of income.”