Case Law Details
Shri S. Ganesh vs. ACIT (ITAT Mumbai), ITA No.3565/Mum/2012, Date of pronouncement: 16.11.2012
Tribunal held that in the absence of any material brought by the revenue authorities that the assessee has received amount more than the professional fees which has been declared by him in the P&L account and when the professional income declared by the assessee far exceeds the professional fees shown in the AIR information, then additions solely based on the AIR information are not sustainable.
AO has stated that as per AIR information, assessee has received total fees amounting to Rs.59,28,900. AO has made the addition of Rs.59,28,900 on the ground that assessee has neither filed the break up of his paty-wise professional fees, nor has given a statement as to reconcile the professional fees alongwith the bank statements to show that all entries in the AIR have been offered to tax. Being aggrieved, assessee filed appeal before ld CIT(A).
Ld CIT(A) has confirmed part addition stating that assessee could not reconcile all entries, details of which are given by him at page 8 of the impugned order and has confirmed the addition relating to 8 entries. It is relevant to state that on the basis of entries of details stated to be reconciled aggregate to Rs.36,8 1,000 out of 59,28,900. Therefore, addition confirmed by ld CIT(A) on account of not able to reconcile the entries of AIR information aggregates to Rs.22,47,900.
During the course of hearing, assessee submitted that professional fees returned by assessee for the assessment year under consideration is of Rs.5,64,91,441, which is far more than the details reflected in the AIR information of Rs.59,28,900. He submitted that all his professional receipts were deposited in one bank account and all fees are received by cheques which came from the client directly or from the instructing advocates, in case they have collected the amounts from the clients. He submitted that identical issue of non-reconciliation of professional fees with AIR information has been decided by the Tribunal in his own case for assessment year 2006-07 in I.T.A. No.527/M/2010 vide order dated 8.12.2010 and furnished a copy of the said order to substantiate his submission. He submitted that the basis on which the said entry has been made in the assessment year under consideration is identical to assessment year 2006-07. He submitted that the addition made in the facts and circumstances of the case is not justified.
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