Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 294 - AT - Income TaxAddition of total advances received from the customers - HELD THAT:- Out of the customer advances of ₹ 4,98,69,526/-, advances accepted by the assessee during the relevant assessment year under consideration was ₹ 5,37,236/-. The assessee failed to furnish the details called for by the AO. Though the assessee has furnished the account copies, the confirmations and other details called for by the AO were not furnished by the assessee and the Ld.AR also fairly conceded for the addition of ₹ 5,37,236/-, therefore, we set aside the order of the Ld.CIT(A) and confirm the addition of ₹ 5,37,236/- out of the total customer advances of ₹ 4,98,69,526/-. Accordingly, this ground of the appeal of the revenue is allowed. Addition of creditors for advances - HELD THAT:- All the credits were adjusted against the sales or related to trade transaction and no cash transaction involved. Though the assessee has furnished the complete details, the AO did not cause any enquiry to disprove the evidences produced by the assessee. As observed from the order of the CIT(A), the AO did not make any effort also during the remand stage. Once the assessee furnished the complete details of ledger accounts, customer details, vouchers and bills and completion certificates of the lifts, the burden of the assessee gets discharged and it is for the AO to make necessary enquiries and to prove the genuineness or otherwise. In the instant case, inspite of the fact that the books of accounts, bills, vouchers, details and the completion certificates are available, the AO did not find any defect in the details furnished by the assessee. Since the assessee has affected the sales and adjusted the sale advances in the subsequent years, there is no reason to suspect the genuineness of the trade creditors, hence, there is no case for making the addition. - Decided in favour of assessee Addition u/s 41(1) - HELD THAT:- AO did not make any addition u/s 41(1) of the Act. There is no dispute that the sum of ₹ 4,98,69,526/- was not related to the assessment year under consideration and the AO made the addition u/s 68 of the Act. AO is not permitted to make addition of opening balances u/s 68 of the Act. Though the revenue has raised the ground with regard to sustaining the addition u/s 41(1) the assessee has neither admitted the income u/s 41(1) nor the AO made out a case for taxing the creditor u/s 41(1). Therefore, the ground raised by the revenue is infructuous, hence dismissed.
|