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2013 (2) TMI 501 - AT - Income TaxAddition u/s 68 – Advance from customers – Assessee is a dealer of tractors and spare parts manufactured by Mahindra Tractors – There was unsecured loan in the books – It was received through demand draft - six parties had advanced against purchase of tractors to be billed in the subsequent year - AO taxed the same u/s.68 – Held that:- Assessee had discharged the onus which lay upon him and it was not the case for the AO to make pertinent note of the disclosure in the balance sheet that the trade creditors were to be separately indicated other than sundry creditors and unsecured loans – Assessee was not to be burdened under the provisions of Section 68 in respect of the six parties who have been adjusted from their advance in the subsequent sales – Further two persons who could not appear before the AO, had adequately established their identity, genuineness and creditworthiness as per the notings of the authorities below. Further a customer of the assessee cannot be summoned to justify the amount paid by him for the purchase of tractor as after having purchased the goods he had no relation whatsoever with the assessee. The AO therefore was only to consider the identity, genuineness and creditworthiness of the purported loan creditors on the basis of confirmations and income tax documents filed before him which were self sufficient – No addition should be made u/s 68 – In fafour of assessee. Discount to customers - Merely because the receipt vouchers were made by the assessee cannot be a ground to make ad hoc disallowance out of the claim of discount – such ad hoc disallowance cannot be sustained for legal scrutiny, without identifying a particular customer who could not be said to have availed such discount – In any case, the discount for disallowance has to be identified on specific finding which is lacking in the instant case – In favour of assessee. Donations made to “pooja” committees – In this respect impugned orders of the authorities was upheld – Against the assessee.
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