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2021 (3) TMI 154 - AT - Income TaxAddition u/s 68 - unexplained cash credit - HELD THAT:- On perusal of the orders of authorities below, it is not clear as to whether the above credits were opening balance of the earlier assessment year or relevant assessment year under appeal, because, section 68 of the Act applies only to any sum credited in the books of the assessee in the financial year relevant to the assessment year under appeal. In the case of KNR Roofing Pvt. Ltd. v. ACIT [2019 (10) TMI 842 - ITAT BANGALORE] Tribunal was of the opinion that under section 68 of the Act, it is only the credit entry appearing in the books of account of an assessee for the relevant previous year, that can be treated as unexplained cash credit in the absence of proper explanation by the assessee and therefore, the opening balances of preceding previous years cannot be added under section 68 of the Act. In view of the above, the Assessing Officer is directed to verify as to whether the above credit entry appearing in the books of account of the assessee for the relevant previous year or preceding previous years and decide the issue in accordance with law after affording an opportunity of being heard to the assessee. Disallowance of sales promotion expenses - assessee has claimed to have incurred sales promotion and sales promotion material towards purchase of complimentary items like Ball pens, telephones, wall calendars, Dr. Note Pads, etc. - HELD THAT:- Applicability of CBDT Circular No. 5/2012 dated 01.08.2012 in the assessment year 2010-11. Actually, under the head "sales promotion and sales promotion material", the assessee has claimed total expenditure for the purchase of complimentary items like Ball pens, telephones, wall calendars, Dr. Note Pads, etc., against which the AR of the assessee has submitted bills only for ₹ 46,61,249/- and for the balance amount of ₹ 22,64,048/- the AR of the assessee could not file any bills/vouchers. In the appellate order, the ld. CIT(A) has not given any findings on this ground. Assuming jurisdiction and after hearing both the parties, we proceeded to decide the ground on merits. For allowance of any expenditure, proper bills and vouchers are required for verification. In this case, in the absence of any bills/vouchers produced before the Assessing Officer or any higher appellate authorities for the amount of ₹ 22,64,048/- incurred for sales promotion and sales promotion materials, the said amount is liable to be disallowed. Accordingly, the expenditure of ₹ 22,64,048/- disallowed by the Assessing Officer for want bills/vouchers stands confirmed. Thus, the ground raised by the assessee is dismissed.
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