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2015 (9) TMI 1407 - AT - Income TaxAddition on account of difference in the balance of one debtor, M/s. Sen & Associates - Held that:- As rightly contended by the ld. Counsel for the assessee, when the debit balance in the account of M/s. Sen & Associates was a result of sales made to the said party by the assessee and the entire sales made to the said party were duly accounted for by the assessee in its books of accounts, the difference in the balance arisen as a result of any payment made by the said party but not accounted for by the assessee cannot be treated as income of the assessee, as the same would result in double addition. It is observed that this stand was taken by the assessee even before the ld. CIT(A), but he proceeded to sustain the addition made by the AO to the extent of ₹ 1 lakh observing that the payment made by the concerned debtor having not been accounted for by the assessee in its books of account, the same might have been spent out of books of accounts or was available with the assessee. He accordingly held that the addition to the extent of ₹ 1 lakh was liable to be made under section 69A or 69C of the Act. In my opinion, this altogether new basis adopted by the ld. CIT(A) while sustaining the impugned addition, was not supported by any evidence and the same being based on mere surmises and conjectures is not tenable. Therefore, delete the addition made by the AO on this issue and sustained by the ld. CIT(A) - Decided in favour of assessee
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