SHRI.DURGOJI JAGADEESH,HARIHAR vs. THE INCOME TAX OFFICER WARD-1(3), DAVANGERE

O R D E R

PER SHRI PAVAN KUMAR GADALE, JM :

At the time of hearing, none appeared on behalf of the assessee nor adjournment petition was filed. Considering the material on record and the submissions of Ld.DR ,the appeal was heard..

3. The Brief facts of the case are that, the assessee is an individual and is engaged in the business of retail liquor trade. Earlier the assessment was completed under Section 143(3) of the Act with the total income of Rs.4, 84,630/-vide order dt.27.03.2013. Subsequently, The Commissioner of Income tax Davangere has Revision order under Section 263 of the Act dt.11.3.2014, directing the Assessing Officer to redo the assessment with the observations that (i) withdrawals are made by the assessee for renovation of residential building, but the assessee instead of debiting to the capital account,has debited to purchase account of KSBCL,which resulted in excess of assets over liabilities and same has to be added to the returned income (ii) Further balance of Rs.4,720/- in the bank Account of assessee in State Bank of Mysore, Kumarapatnam Branch was not taken to the Balance Sheet.Therefore, the Assessing Officer has issued notice under section 142(1) of the Act, but there was no response from the assessee in spite of providing several opportunities.Hence the Assessing Officer has made an addition of Rs.5,36,598/- and also an amount of Rs.4,720/- is not disclosed in the balance sheet and assessed the total income of Rs.10,25,948/- and passed the Assessment order under Section 144 r.w.s. 263 of the Act dt.27.3.2015.

Aggrieved by the order, the assessee has filed an appeal with the CIT (Appeals), whereas the CIT (Appeals) has considered the grounds of appeal, statement of facts and submissions of the assessee and find that Hon’ble commissioner of Income tax davangere in the revision proceedings observed that there is a difference of Rs5,36,598/-between payments made to KSBCL in the assessee books of account compared to KSBCL Ledger. The assessee has made withdrawals for renovation of residential building, but instead of debiting to the capital account, the accountant of KSBCL, if such drawings are reduced from capital account, there would be excess of assets over liabilities of equal amount and has to be added to the total income.The CIT(A) found that the assessee is applying new thought to the disputed issue and concurred with the action of the Assessing Officer and dismissed the assessee's appeal. Aggrieved by the CIT (Appeals) order, the assessee has filed an appeal before the Tribunal.