Case Law Details
Anuradha Pandey Vs ITO (ITAT Varansi)
The limited controversy is regarding the source of investment from realization of closing stock and debtors as on 31st March, 2011. The assessee claimed that she has realized from the sale of old stock of Rs. 9,04,000/- and from debtors of Rs. 2,65,290/- total amounting to Rs. 11,65,690/- and claimed the source of investment in the house property to the tune of Rs. 11,00,000/- from this amount of realization from the closing stock of the previous year as well as from debtors. The CIT(A) estimated these amount of realization from the inventories and debtors at Rs. 5,00,000/- out of the claim of Rs. 11,00,000/-. As regards the claim of realization from debtors of Rs. 2,65,290/-, it is apparent from the balance-sheet filed by the assessee during the proceedings before the CIT(A) for the preceding assessment year showing only 1,25,634/- as closing balance of sundry debtors therefore, this claim of realization of Rs. 2,65,290/- is contrary to the balance of debtors as on 31st March, 2011. However, without going into these unreliable claims and figures which are not matching to each other if this amount of Rs. 9,08,300/- is considered as available to the assessee for making the investment after realizing the closing stock as well as debtors, then the estimation made by the CIT(A) on this account of Rs. 5,00,000/- would be unjustified and without any basis. Hence, in the facts and circumstances of the case, when the CIT(A) has accepted the correct figure of Rs. 9,08,300/- as shown in the return of income, then to that extent, the source from realization of closing stock and debtors ought to have been accepted. Accordingly, the addition sustained by the CIT(A) of Rs. 6,00,000/- is restricted to Rs.1,81,700/-
FULL TEXT OF THE ORDER OF ITAT VARANASI
This appeal by the assessee is directed against the order dated 13.11.2019 of CIT(A) for the assessment year 2012-13. The assessee has filed the following grounds:-
“(1) That the, only Difference amount of Rs. 5,00,000.00 (due to wrong Itr (other than the assessee) has been taken in the original assessment) by the Ld. CIT-Appeal Gorakhpur Without considering the fact and Documents produced before him.
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