Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 1553 - AT - Income TaxAddition u/s 68 - cash deposits were out of sale proceeds which were reflecting in the sales account because no such explanation was offered before the A.O. during the course of scrutiny proceedings - Held that:- The entire deposit to the bank account has been recorded in the books of the assessee and the books were produced before the Assessing Officer. The total sales of the assessee were of ₹ 8511415/-. Out of the total sales, the assessee has cash sales of ₹ 449338/-. The entire cash deposit is either from sale proceeds or from the collection against the book debt. We find that as per section 68 of the Act sum should be credited in the books but the assessee has credited the sale proceeds in its books of accounts which has been accepted by the Assessing Officer. AO has nowhere found the defect in the books of accounts, therefore, when the assessee has credit sale proceeds in cash in the books of accounts and the same is deposited in bank, no addition can be made u/s 68 Unexplained share application money - Held that:- In case of three parties the learned CIT(A) was of the view that three parties, viz. M/s R.K. Skyline Construction Ltd., M/s Renovision Commece P. Ltd and Amarjyoti Vyapar Ltd. no cash was deposited and the learned CIT(A) has verified the bank accounts of these parties and he has treated it as genuine and the addition of ₹ 12 lacs was deleted. Therefore, our interference is not called for.
|