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2017 (7) TMI 693 - ITAT INDOREReal income - Addition on account of advances received from customers which have been transmitted to the supplier - final judgement from the courts were pending - Held that:- It is seen that the amount received from customers is because of recovery made as tax by Coal companies from the assessee, which is shown as advance in the books of accounts, as the matter is under dispute by the assessee against coal suppliers. The assessee has also paid this amount to coal companies, who in turn showing it as advances in their books of accounts. If revenue wants to tax this amount in the hands of the assessee, then, the assessee be allowed deduction on account taxes paid to coal companies. If the Courts decides the issue in favour of the assessee, then the assessee would have to return this amount to customers. This being so, there is no real income in the hands of the assessee. In view of this matter, we find that the finding of Ld. CIT (A) as correct , therefore, no interference is called for. Accordingly, this grounds of appeal of revenue is dismissed. Reopening of assessment - reasons to believe - Held that:- The assessee has recovered an amount of ₹ 78,82,705/- from SSI units and paid to WCL on account of GSTV and same has been shown under the head advance received from customers , hence, there was prima-facie case of reason to believe that income chargeable to tax has escaped assessment. Further reliance placed in the case of Raymond Woolen Mills Ltd. vs. ITO [1997 (12) TMI 12 - SUPREME Court] wherein it was observed that in determining whether commencement of proceedings u/s 147(a) was valid, what was to be seen was only the prima facie material; the sufficiency or correctness of the material was not a thing to be considered at that stage. Reopening of the assessment of the preceding year on the basis of information obtained in the subsequent year's proceedings regarding undervaluation of inventories resulting in under- statement of profits was held valid under section 147(a). In the case of Kalaynji Mabji & Cop. V. CIT (1975 (12) TMI 2 - SUPREME Court) it was held that reassessment can be initiated even if information may be obtained from record of original assessment. - Decided against revenue
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