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2017 (1) TMI 1001 - AT - Income TaxAddition on account of difference in opening balance of sundry creditor namely MTA - Held that:- We find that the balance of sundry creditor was brought forward in the year under consideration from the previous financial year. As such, we find that the corresponding purchase in relation to impugned sundry creditor was booked by the assessee in the immediate preceding year which has been allowed in the earlier year. Therefore, in our considered view, the issue of sundry creditor does not pertain to the year under consideration before us. As the issue is not arising for the sundry creditor in the year under consideration, therefore, no disallowance can be made. On merit as well we find that the MBC has confirmed the value of the tickets sold to the assessee which is exactly matching as shown in the books of account of the assessee. To the contrary, Ld. DR has not brought any defect in the confirmation received from MBC. Simply assessee has booked the sundry creditor liability with MTA out of ignorance cannot form the basis for the addition of such sundry creditor. Similarly what policy is being adopted by MBC for recognizing the sales Revenue has no bearing to the facts of the case. On perusal of the ledger of MTA, we find that the accounts were settled in the year under consideration. - Decided in favour of assessee Addition on account of non disclosure of income from interest - AO made the addition on account of difference in the net profit shown by assessee in its profit and loss account and profit shown in the computation of income - Held that:- On perusal of audited profit and loss a/c of assessee along with computation of income, we find that assessee in its profit and loss a/c has not shown any remuneration to the partners but same was shown in the profit and loss account appropriation. However the amount shown in the computation of income was after deduction of partner’s remuneration. Therefore, mismatch in figure was observed. Therefore after considering the submission of the assessee, we find no difference between amount of profit shown in the profit and loss account and in the computation of income. As such, we find no infirmity in the order of Ld. CIT(A). - Decided in favour of assessee Addition on account of diversification of interest bearing fund to interest free loan - Held that:- There is no dispute with regard to amount of debtor shown in the balance-sheet vis-à-vis interest free loan provided by assessee. In the absence of any specific finding with regard to diversion of fund we are not agreed with the arguments placed by Ld. DR. Similarly, we also find that it is the discretion of the assessee to charge or not to charge interest from the debtors. The AO cannot enter into the shoes of assessee for deciding to charge interest on the amount of debtor shown as on 31.03.2008 in its balance sheet. In the light of above reasoning, we hold that the order of the Ld. CIT(A) is correct and in accordance with law and no interference is called for - Decided in favour of assessee Addition on account of difference in gross profit - Held that:- From the perusal of remand report, it is ample clear, that there is no cogent reason for rejecting the books of account and estimating the gross profit @ 0.41%. This fact has been duly accepted by AO in its remand report. In this view of the matter, we find no reason to interfere with the findings arrived by the Ld. CIT(A). Under the circumstances, this issue of Revenue’s appeal is dismissed. Disallowance on account of credit entries found in the books of account of assessee - Held that:- We find that the addition was made by AO on account of non-submission of supporting documents by assessee in respect of credit entries found in the books of account of assessee. Now, before us Ld. AR for the assessee first time submitted that the ledger copy of MVE which constitute the additional documents but the same has not been verified by Authorities Below. Needless to mention that the additional document was not submitted before Authorities Below but it does not mean that he should be deprived of justice. Thus restore the matter to the file of AO for fresh adjudication. This ground of assessee’s appeal is allowed for statistical purpose in terms of above.
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