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Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI
Before: SHRI P.K. BANSAL & SHRI PAWAN SINGH
This appeal has been filed by the assessee against the order of CIT(A)-29, Mumbai dated 12.9.2011. The only issue involved in this appeal relates to sustenance of addition of Rs.54,42,249/-.
We heard the rival submissions and carefully considered the same alongwith the order of tax authorities below. We noted that in this case the Assessing Officer made an addition of Rs.54,42,249/- in respect of cash credit as he found that the opening balance in the Capital account as on 1.4.2006 after considering the revised return for 2 Shriniwas Gangadhar Mittapalli Assessment Year 2005-06, as claimed by the assessee, would be Rs.19,53,27,981/-, while assessee has shown the opening balance in the Capital account, as per audited balance sheet filed for Assessment Year 2007-08, at Rs.20,07,70,232/-. When the matter went before the CIT(A), the CIT(A) confirmed the order of Assessing Officer just observing that during the appeal proceedings, assessee has not filed any evidence for the claim while the Assessing Officer has passed a detailed and reasoned order finding discrepancy in the opening Capital account amounting to Rs.54,42,249/-. Before us, the ld. AR has submitted an explanation in respect of the difference in the opening Capital account balance amounting to Rs.54,42,249/- and referred to page 2 of the assessment order as well as the letter requesting the Assessing Officer to refer to revised return filed by the assessee for Assessment Years 2005-06 and 2006-07, and on that basis it was pointed out that there is no difference in the opening balance as on 1.4.2006. The reconciliation, as brought to our knowledge, reads as under :-
Closing Balance in Capital Account as on 31.03.2005 19,52,69,058 (As per Revised Return AY 2005-06) Which will be Opening Balance on 01.04.2005 i.e. AY 06-07
Add : Profit as declared in A.Y 2006-2007 55,67,112.66 (As per Revised Return for A.Y 2006-2007) 20,08,36,170.66 Less : Drawings shown in A.Y 2006-2007 65,938 Closing Balance as on 31.03.2006 20,07,70,232.66
We have gone through the reconciliation filed by the assessee alongwith page 3 of the assessment order in which the Assessing Officer
3 Shriniwas Gangadhar Mittapalli has found the discrepancy of Rs.54,42,249/-. After going through the reconciliation made by the assessee, we are convinced that there is no difference as has been referred to by the Assessing Officer in his assessment order for the impugned assessment year. We do not find that there remains any discrepancy of Rs.54,42,249/-. We, therefore, feel that neither the Assessing Officer nor the CIT(A) could appreciate the reconciliation made by the assessee. We, therefore, set aside the order of CIT(A) and delete the addition made by Assessing Officer amounting to Rs.54,42,249/-.
In the result, the appeal filed by assessee is allowed.
Order pronounced in the open court on 23rd December, 2016.