DCIT, CENTRAL CIRCLE, GHAZIABAD vs. PUMMY SAHNI, DELHI

Ground No. 3 & 4 being general grounds do not require adjudication.

In ground No. 1, Revenue has challenged deletion of addition of Rs.1,44,69,493/-.

Briefly, the facts relating to this issue are, the assessee is a resident individual. Pursuant to search and seizure operation u/s. 132 of the Income-tax Act, 1961 conducted in case of assessee on 03.11.2016, proceedings u/s. 153A of the Act were initiated against the assessee. In course of assessment proceedings, Assessing Officer noticed that in course of search and seizure operation, a hard disc was seized from the premises containing personal balance sheet of the assessee for financial year 2015-16 relevant to assessment year under dispute. On perusal of the said balance sheet and profit & loss account, he found that the assessee has shown net profit of Rs.1,51,29,583/-, whereas, in the return of income filed in pursuance to notice u/s. 153A of the Act, the assessee has declared income of Rs.6,60,090/-. Thus, he was of the view that income declared in the return of income is not in consonance with profit & loss account. After issuing a show cause notice to the assessee and examining her explanation, Assessing Officer ultimately made addition of Rs.1,44,69,493/-, being the difference between net profit as per profit & loss account and the income declared in the return of income. Assessee contested the addition before ld. Commissioner (Appeals). After considering the submissions of the assessee in the context of facts and materials on record, ld. Commissioner (Appeals), being convinced, deleted the addition.

We have considered rival submissions and perused the materials on record. Undisputedly, alleging that the assessee has offered lesser income in the return of income than what is reflected in the profit & loss account, Assessing Officer has made the disputed addition. However, it is the say of the assessee that there is no difference in the income shown in profit & loss account and as offered in the return of income. It is the contention of the assessee that the income declared in the return of income is after claiming certain deductions/exemptions. It is observed, in course of proceedings before the first appellate authority, the assessee has not only made submissions but has also furnished documentary evidences to reconcile the alleged difference between the income reflected in profit & loss account and as shown in the return of income.

In ground No.2, the Revenue has challenged deletion of addition of Rs.3,60,88,611/-.

Briefly, the facts relating to this issue are, in course of assessment proceedings, the Assessing Officer while verifying the balance sheet of the assessee as found in the hard disc recovered in course of search and seizure operation, noticed that under the head ‘loans and liability’, unsecured loan of Rs.3,60,88,611.44 has been shown. Noticing this, Assessing Officer called upon the assessee to furnish complete names and postal addresses of the parties who advanced unsecured loans along with confirmations, Income-tax returns, relevant bank statements etc.

We have considered rival submissions and perused materials on record. It is observed, while explaining the source of unsecured loan in dispute, the assessee had submitted before learned first appellate authority that except an amount of Rs.65,803/-, which was received as unsecured loan from her husband during the year under consideration, all other unsecured loans appearing in the balance sheet were carried over from earlier assessment years. Necessary documentary evidences in this regard were also furnished before ld. Commissioner (Appeals).

In the result, appeal is dismissed.