Case Law Details
Brief of the Case
ITAT Ahmedabad held In the case of ITO vs. M/s Bharat Agro Industries that section 69 comes into operation only if investments are not recorded in the books of account maintained by the assessee which is not the case looking to the facts of the assessee wherein the bank balances are shown in the audited balance sheet and reconciliation statement for various entries which were not tallied duly put on record before the lower authorities and also filed along with Paper Book. Further the AO has himself recorded in his order that assessee has disclosed all the bank accounts in his regular books of account and only because of the reason that some of the entries would not tally at the time of hearing resulted into such additions. Therefore, looking to the above facts there remains no scope of any addition under section 69.
Facts of the Case
The assessee filed its return of income for AY 2009-10 on 31.08.2009 declaring income of Rs.66,760/-. The return was processed under section 143(1) and thereafter selected for scrutiny under CASS and notice u/s 143(2). The AO framed the assessment order under section 143(3) on 30th December, 2011 by making certain additions. The major addition was u/s 69 in relation to untallied entries /credits /deposits /clearings as appearing in four bank statements shown by the assessee in its books and due to lack of satisfactory explanation/details AO made an addition of Rs.33,38,164. Further addition was made on account of disallowance of machinery repair expenses. The AO made the disallowance for the very reason that substantial amount was incurred in relation to repair of plant and machinery and the same was, therefore, required to be capitalized and allowed depreciation on the same as per the rates prescribed.
Contention of the Assessee
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