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2018 (12) TMI 462 - AT - Income TaxAddition on account of difference of commission - scrutiny assessment - unexplained sundry creditors - Held that:- Information u/s 133(6) of the Act was called by A.O himself from the alleged creditor Shivalik Vyapar Pvt. Ltd to which reply was received along with three separate amounts out of which in one of the account namely M/s Harisons debit balance was shown at ₹ 2,39,10,415/- whereas in the assessee’s books of accounts the balance has been shown at ₹ 2,39,33,988/-. This fact has been well noted by the A.O himself in the assessment order. It seems that due to inadvertence he mentioned in para 5 of the assessment order that the confirmation of account has not been received from Shivalik Vyapar Pvt. Ltd and due to this mistake on the part of the Ld.A.O addition of ₹ 2,39,33,988/- was made. CIT(A) rightly appreciated the facts coming to the conclusion that there was only a difference of ₹ 23,573/- which was on account of difference of commission and apart from this there was no other difference in the account balance with the sundry Creditor Shivalik Vyapar Pvt. Ltd. - decided against revenue Difference in the sale account of Shivalik Vyapar Pvt. Ltd. - confirmation of account received from M/s Shivalik Vyapar Pvt. Ltd there was a closing balance at ₹ 68,28,938/- whereas NIL balance was appearing in the balance sheet of the assessee - Held that:- CIT(A) deleted this addition after detailed examination of the fact that the alleged balance was on account of Bank of Baroda LC which was issued by M/s Shivalik Vyapar Pvt. Ltd for purchasing goods from the assessee and the alleged amount is merely a journal entry through which the alleged amount has been credited in the books of M/s Shivalik Vyapar Pvt. Ltd and corresponding debit to Bank of Baroda LC account which is balance payable by M/s Shivalik Vyapar Pvt. Ltd to the bank. In fact there is no balance amount receivable by the assessee from M/s Shivalik Vyapar Pvt. Ltd. The above findings of CIT(A) has not been controverted by Ld. Departmental Representative and the fact emanating out of this finding are duly verifiable with the copy of ledger account placed - no inconsistency in the findings of Ld.CIT(A) deleting the addition. Admission of additional evidence without following rule 46A of the I.T Act and not calling for remand report of the A.O needs to be dismissed in the given facts where it is proved beyond doubt that all the necessary details were directly called for by A.O from the alleged sundry creditors by issuing notice u/s 133(6) of the Act which were duly complied. We accordingly dismiss Ground No.3 of revenue’s appeal. Addition u/s 68 - Held that:- CIT(A) has not been controverted by Ld. Departmental Representative and it is duly discernable from the records that Ld. A.O though was having necessary conformation of account received from M/s. Shivalik Vyapar Pvt. Ltd in his records called by him under the information u/s 136(6) of the Act, but it seems that due to inadvertence he ignored the same which lead to the alleged addition, which has been rightly deleted by Ld.CIT(A). No interference is therefore called for in the finding of Ld.CIT(A) deleting the addition of ₹ 2,44,74,156/-. We accordingly dismiss Ground No.1 raised by the Revenue. Addition on account of creditors - Held that:- Confirmation of amounts of all the alleged five creditors have been examined by the first appellate authority and there is no dispute to the fact that the payment to these creditors have been made through proper banking channel in the succeeding financial year. No interference is therefore called for in the finding of Ld.CIT(A) deleting the addition of ₹ 38,49,923/- and the same is upheld.
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