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2015 (4) TMI 476 - AT - Income TaxDisallowance of unexplained credit, impliedly u/s 68 - assessee argued before the ld. CIT(A) that some land was purchased by the assessee from Shri Narender Kumar for a sum of ₹ 18,74,07,000/- which appeared as stock in its balance sheet under the head ‘Inventories.’ - confirmation could not be obtained from Shri Narender Kumar as the time given by the AO was too short. Considering these facts, the ld. CIT(A) deleted the addition - Held that:- In principle, there can be no dispute on the proposition that an addition u/s 68 of the Act can be made only if there is a fresh credit in the books of account of the assessee arising in the previous year relevant to the assessment year under consideration. If the balance is outstanding from earlier year, then, it cannot be a case of making addition u/s 68 in a later year - The balance sheet filed by the assessee, though show the balances at the level stated, but the names of the parties are not given. The explanation tendered before the ld. CIT(A) was not given to the AO, enabling him to examine its veracity w.r.t. the books of accounts. Under such circumstances, we set aside the impugned order on this score and remit the matter to the file of the AO for examining the assessee’s claim - Matter remanded back. Case of the assessee is that the sum of ₹ 3,67,395/- was claimed as deduction in the preceding year which was disallowed by the AO and the reversal by means of write back of this amount in the current year could not be charged to tax as it would result in to double taxation of the same amount. - but there is no material to support the contention made before us. Since necessary details in this regard are not available and the impugned order is silent on this aspect, we remit this matter to the file of the AO for examining the veracity of the assessee’s contention. If it is found that the addition made to the tune of ₹ 3.67 lac in the preceding year on this account has attained finality inasmuch as the assessee has not challenged it in the appellate proceedings, then, the amount of ₹ 3.67 lac, representing the write back of the same amount, should not be taxed in the assessment of the current year. - Matter remanded back - Decided in favour of Revenue.
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