IN THE ITAT AGRA BENCH
Dream Shelters (P.) Ltd.
Versus
Income-tax Officer, Agra
IT Appeal No. 277 (Agra) of 2012
[Assessment year 2008-09]
October 23, 2012
ORDER
A.L. Gehlot, Accountant Member – This is an appeal filed by the assessee against the order dated 01.03.2012 passed by the ld. CIT(A)-II, Agra for the Assessment Year 2008-09.
2. The assessee has raised the following grounds of appeal: –
“1. That the order passed under section 143(3) of the I Act, 1961 by the Ld. Assessing Officer and confirmed by the ld. CIT(A) is wrong, unjust and illegal.
2. That the learned CIT(Appeals) was wrong and unjust in confirming the addition made by the ld. A.O. of Rs. 370000/- to the book profit for the calculation of MAT under section 115JB of the I T Act, 1961 which is wrong as nothing can be added to book profit to calculate MAT except those items which are mentioned in clauses (a) to (g) of explanation (1) of section 115JB of the Income Tax At, 1961.
3. That the appellant craves leave to add or alter one or more ground(s) during the hearing of appeal.”
3. The assessee instead of putting his presence filed written submission. After hearing the ld. Departmental Representative, we proceed to decide the appeal as under :-
4. The brief facts of the case are that during the assessment proceedings the A.O. noticed that the assessee firm is engaged in the business of construction work. During the year under consideration, the assessee taken loan in cash and subsequently the same was repaid in cash and the accounts were squired up. These accounts are 10 in number totaling to Rs. 3,70,000/-. The A.O. vide order sheet entry dated 12.10.2010 asked the assessee to finish details of these loans and advances. The assessee vide letter dated 18.10.2010 submitted as under, which is reproduced from A.O.’s order.
“That the assessee has already submitted addresses of persons from whom business advances were received. Since at present the assessee don’t have any business relationship with those persons and also there is marriage of son of the director, he is quite busy in arrangements of marriage and not in a position to contact these persons and to produce them, the assessee therefore, in order to buy peace of mind and having assurance from your honour not to impose penalty, offer the amount which he has received from those persons aggregating to Rs. 3,70,000/-, same may be treated as our income.”
5.On admission of Rs.3,70,000/- for addition by the assessee, the A.O. computed book profit under section 115JB of the Income Tax Act, 1961 (‘the Act’ hereinafter) as under :-
