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2017 (10) TMI 1501 - HC - Income TaxAccrual of income - Addition on account of suppression of scrap sales - HELD THAT:- In the present case, no real income accrued to the appellant or was received by it during the year under reference4 simple because it did not recover or realize the same. As evident from the examination of the vendor M/s Noble Industries by the AO during remand proceedings, it had not returned the scrap to the appellant. On the contract undertaken as sub-contracted to sub vendors and there was no evidence on the record to suggest that these sub-vendors had ever returned the scrap to the alleged vendor or the appellant itself. The appellant had provided complete names & addresses of these sub-vendors along with their PANs to the AO. Accordingly no adverse inference could have drawn against the appellant merely on surmises. There was no real income which could be brought to tax in the hands of the appellant on accrual basis or receipt basis. In view of above facts, direct the AO to delete the addition - Decided in favour of assessee.
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