assessment year 1996-97 the assessee had shown an opening capital of Rs. 60,000. This was not accepted by the Assessing Officer ... commission income; disbelieving the gifts received by the assessee; disallowing the opening capital; treating the cash found in the course of search as undisclosed income
which are open before the A.O. are opened up for
scrutiny. In my considered view, discrepancy, if any, found in the capital account
accretion ... opening bank
balance of Rs.7,55,750/- and treated the remaining amount of
opening capital of Rs.49,66,695/- as unexplained investment
made by ld.AO
on account of opening capital balance available with assessee,
arbitrarily. Appellant prays that he is engaged in the business since
past ... years and filing Return of Income regularly, therefore
source of opening capital is explained beyond doubt.
3.1 That, ld. CIT(A) has further erred
earned by 17,003 60,050
Shahbaz Khan
20 Opening capital Gr. No. 4 - - - - - -
of assessee 6,89,612
21 Opening capital
made by Assessing
Officer on account of unexplained opening capital.
4. Ld. Departmental Representative vehemently argued on
various grounds referring and relying on the findings ... assessee has submitted the
balance sheet for the first time and opening capital balance was
shown at Rs.1,79,22,599/-. The assessee
your goodself has raised an
issue regarding substantial increase in opening capital for the subject
assessment year. Your goodself has contended that ... submitted regarding opening
capital as under:
"Regarding the addition to the capital of assessee, there is no addition to the
capital of assessee during
figures of opening stock, gross profit and net profit. The
impugned figure of 23,05,32,408/- which represents opening capital balance is
duly recorded ... relied that since other factors such as opening stock etc had
been accepted by AO, then opening capital also should have been accepted
which are open before the A.O. are opened up for
scrutiny. In my considered view, discrepancy, if any, found in the capital account
accretion ... opening bank
balance of Rs.7,55,750/- and treated the remaining amount of
opening capital of Rs.49,66,695/- as unexplained investment
Balance Sheet
submitted by the assessee, observed that, the assessee has
opening capital of Rs. 1,50,00,000/-. Therefore, called upon the
assessee ... assessee has challenged the addition
made by the A.O. towards opening capital under Section 68 of the
Act, as unexplained cash credit in absence
first appeal, the Ld. CIT(A)
confirmed the addition of opening capital balance u/s 68 of the Act,
however, restricted the addition on account ... facts in
confirming the actions of the AO in assessing the opening capital
ITA No.40-Chd-2020
Sh. Mukesh Kumar, Jagadhari
3
balance
