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2012 (7) TMI 484 - ITAT, AGRAUnaccounted contract receipts - CIT(A)deleted additions made by AO - CIT(A) held that the additions made by AO are covered in the surrender of Rs.5 lacs made by the assessee during the course of assessment proceedings - Held that:- If this amount has been received in subsequent year and has been offered for tax this submission can be explained very well by furnishing the relevant abstract of books of accounts of contract receipts in the year under consideration and for the subsequent year. The assessee instead of furnishing such reasonable documents, tried to further explain which is just contrary to the earlier explanation that the amount was payable on account of E.D. royalty and others etc and also not supported by the relevant abstract of books of account which is very well in the possession of the assessee and the burden is on the assessee to furnish such information and details of documents to ascertain the correct fact - the CIT(A) has wrongly deleted the addition simply relying on assessee’s submissions without verifying the relevant facts - The set off allowed by the CIT(A) against surrender of Rs.5,00,000/- is not correct it was for deficiencies in vouchers etc - in favour of Revenue. Suppression of closing stock as it is shown in the balance sheet and not shown in the trading account - CIT(A)deleted additions made by AO - Held that:- Considering the assessee's submission that he has followed a system of accounting in respect of purchases to take net amount of repair & maintenance, part tyre tube, bitumen, diesel and material expenses verifiable from the copies of the ledger account of financial statement. Thus when purchases expenses have been debited to P/L account by net amount, naturally the stock in hand in this account remains in the respective individual account which can be said to be individual trading account. The corresponding effect of the accounting entries are shown by the assessee in the Balance Sheet - Additions made by AO deleted on above ground and not CIT's stand to set off from surrender amount - Against Revenue. Non incurring of any expense regarding the provision for legal and consultancy charges - CIT(A)deleted additions made by AO - Held that:- No infirmity in the order of CIT(A) as the assessee has surrendered Rs.5,00,000/- on account of non-producing the relevant bills and vouchers. Therefore, the separate addition is not warranted - in favour of assessee. Additions made on account of bogus liabilities - CIT(A)deleted additions made by AO - Held that:- Assessee filed a comparative chart of the result of computation of position of labour and material expenses but that does not help as the case of the A.O. was that these were outstanding liabilities for which the assessee has failed to prove that these liabilities were in fact outstanding. Further, the assessee failed to prove genuineness of these liabilities. - CIT(A) deleted the said addition without verifications - in favour of Revenue. Non Inclusion of contract receipt in work in progress - CIT(A)deleted additions made by AO - Held that:- The assessee has failed to furnish the details of closing stock as called for in the proforma the contention of the assessee that contract receipt for Rs.7,08,444/- is included in the WIP amounting to Rs.2638639/- is not acceptable because the assessee has failed to explain as how this amount is included in WIP - if this amount was included by the assessee in closing stock this amount should be appearing in the debit side of Balance-sheet but there is no entry appearing in the debit side of Balance-sheet - CIT(A)deleted the additions without finding the genuineness - in favour of revenue.
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