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2022 (2) TMI 684 - AT - Income TaxAddition of cash outgo u/s 69 - on-money receipts - whether there is any negative cash balance in the parallel books of accounts maintained by the assessee? - HELD THAT:- We find that the assessee had submitted that the excess on-money reversals were made out of cash loans taken by Shri Jagdish Ahuja. We also find that assessee had duly explained that the said cash loans had been independently added on peak basis in the hands of Shri Jagdish Ahuja by the order of Hon’ble Income Tax Settlement Commission. The purpose of refund of on-money receipts to the customers has been duly explained by the assessee together with its modus-operandi as detailed hereinabove. This is also further confirmed by Shri Jagdish Ahuja in his statement recorded u/s.132(4) of the Act on 28/06/2015. We find that the ld.AO had merely considered on-money receipts portion alone on the receipts side to arrive at the availability of cash with the assessee for making on-money reversal payments. If the cash loans of ₹ 26 Crores which has been independently added in the hands of Shri Jagdish Ahuja is considered on the receipt side, there would be no negative cash balance at all in the parallel books of accounts maintained for the whole group. Assessee submitted various details of additions made on account of net on-money in the case of various group entities of the Ahuja group for A.Y.2014-15 and also on account of inflation of expenses and other income. These facts clearly go to prove that there is lot of force in the submission of the ld. AR that there was absolutely no negative cash balance in the parallel books of accounts maintained in the Tally package. Hence, we hold that there is absolutely no infirmity in the order of order of the ld. CIT(A) granting relief to the assessee as there is no negative cash balance in the parallel books of accounts maintained for the whole Ahuja group which is the primary basis for making an addition per se. Grounds raised by the Revenue are dismissed.
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