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2015 (2) TMI 1312 - AT - Income TaxUnexplained cash credit u/s. 68 - as per assessee the amount was received being advance on account of sale of potato seeds to the farmers and later adjusted the same with the sales within the same year and there is no carry forward credit. According to assessee, these are merely a trade creditor - HELD THAT:- We find that the plea of assessee is quite reasonable that this being trade advance by very nature of activity of the assessee and the same has been adjusted against the sales made to various parties and the area particularly farmer community. This being the nature, these advances are surely trade advances and not cash credit as assumed by AO and upheld by CIT(A). In view of the above facts and circumstances, we are of the view that trade advances cannot be treated as cash credit u/s. 68 and addition made and confirmed by lower authorities is deleted. - Decided in favour of assessee Addition being advance on account of amusement tax - addition under the sub head ‘advance of amusement tax - HELD THAT:- Assessee made no argument qua this addition and even otherwise the assessee before CIT(A) also did not argue on this. The assessee has disclosed this amount as loans and advance under the head ‘loans’ with revenue authorities under the sub head ‘advance of amusement tax’. It is not clear from the records that whether this is paid or not. Once this is not paid it will not be claimed as deduction and the assessee is unable to prove that this is advance on account of amusement tax. As the assessee could not explain neither before lower authorities nor before us, we confirm this addition. This ground of appeal of assessee is dismissed.
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