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2018 (9) TMI 1312 - AT - Income TaxDifference between the figure in the profit & loss account and in Form 26AS - Held that:- The amount of sundry debtors as on 31/03/2009 tallies with the amount of bills raised at the close of earlier year except for a small difference in the amount of Birla Sunlife Insurance Co. This information also supports the contentions of assessee. AO has partly utilized this information to allow part relief and has conveniently ignored the part reply which is not correct as per law. In view of these facts and circumstances it can safely be said that there is no major difference between the figure in the profit & loss account and in Form 26AS as the figures had been duly reconciled. At the most the addition could have been made to the tune of ₹ 38,933/- which is the difference between ₹ 71,64,243/- and ₹ 72,25,310/-. The addition of ₹ 16,11,266/- is restricted to ₹ 38,933/- as the balance difference was duly reconciled and the reconciliation was already with Assessing Officer. Addition u/s 68 - Held that:- For making addition u/s 68 the Assessing Officer has to satisfy himself that the sum credited in the books of the assessee are unexplained. or the explanation offered by him is not satisfactory. In the present case we observe that assessee has received huge amounts as fee for providing services to these parties and therefore, payments received from these companies cannot be termed as ingenuine. The Assessing Officer in his order has not doubted the creditworthiness, identity or genuineness of transactions. He has made the addition only due to difference in amounts relating to two companies and for remaining two companies he had made addition as the notices issued to them u/s 133(6) had returned back. This action of Assessing Officer is not justified as the differences in balances confirmed in two companies cannot be termed as unexplained credits without doubting the identity, creditworthiness and genuineness of transactions. Moreover, only the difference has been added back u/s 68 whereas transactions has not been doubted. This difference coulc have been due to debit or credit notes. Moreover, the Assessing Officer did not confront these confirmations to assessee. Therefore, no addition could have been made by Assessing Officer due to differences u/s 68 of the Act.
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