ANAND KUMAR JHA,HOWRAH vs. DCIT, CENTRAL CIRCLE-1, GUWAHATI, GUWAHATI

The only issue raised by the assessee is against the order of ld. CIT (A) confirming the addition of ₹7,28,363/- as made by the ld. AO u/s 68 of the Act.

The facts in brief are that a search action was taken u/s 132(1) of the Act on Prasad Group including the assessee. The case of the assessee was selected for a complete scrutiny and notice u/s 143(2) of the Act was issued. Accordingly, the assessee filed the return of income on

In the appellate proceedings, the ld. CIT (A) also dismissed the appeal of the assessee, after taking into consideration the reply filed by the assessee, wherein the assessee submitted the amounts of credits pertained to the re-imbursement of expenses in the various group of companies in which the assessee is an employee, some revenues receipts and journal entries. However, according to the ld. CIT (A), the assessee has not produced any evidences corroborating the same and accordingly, the appeal was dismissed.

After hearing the rival contentions and perusing the materials available on record, we find that the credits appearing in the bank account number ‘400110110002709’ with Bank of India, was on account of other incomes received by the assessee as accounting income or interest income, journal entries or on account of Anand Kumar Jha (Annexure ‘A) Year ended 31.03.2021 Headwise details of deposits in Bank of India A/c No.2709 Particulars Credits by Bank Accounting Income 75278 Bank Interest 8869 Received from Client 248,716 Salary 212000 Nity Jha 100000 Amoutn Deposited (cash) 49,000 Transfer from BOI A/c No. 15394 14500 Dipika Sau 20000 Total 728363 06. We observe from the above details and the books of accounts that same were incorporated by the assessee in his books of accounts and accordingly items of incomes were duly shown in the profit and loss account, whereas the other items such as re-imbursement of expenses and transfers to other bank accounts etc. were also duly shown. Therefore, we do not agree with the conclusion drawn by the ld. CIT (A) on this issue. Consequently, we set aside the order of the ld. CIT (A) and direct the ld. AO to delete the addition.

In the result, the appeal of the assessee is allowed.