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2018 (3) TMI 1093 - AT - Income TaxAddition on account of negative cash balance - Held that:- This issue needs reconsideration at the level of the Assessing Officer for the reason that the assessment is to be made on the basis of negative cash balances by adopting the method of peak credit but peak credit has to be taken on daily basis and not on monthly basis as taken by the CIT(A). Before us, learned counsel for the assessee stated that entire details have been filed in respect to peak credit on daily basis even which were filed before the Assessing Officer and the CIT(A). We are of the view that we have no mechanism to verify each and every entry to ascertain the position of negative cash balance on the basis of peak credit on daily basis. Disallowance of discount on commission received from BSNL to retailers - Held that:- From the figures submitted by the assessee regarding details of discount, it is clear that around 5% commission was given by the assessee but Assessing Officer has wrongly worked out the percentage as 6.10%. We find that even the CIT(A) has restricted the discount at 80%, which, in our view, is not the right procedure. In view of above facts and details submitted by the assessee, we are of the view that nothing is to be disallowed because the working given by the assessee regarding commission at 5% on recharge coupons is within the perfect limits. Accordingly, we delete the addition completely and allow this issue of the cross-objection of the assessee. This issue of Revenue’s appeal is dismissed. Application of provisions of Section 40A(3) in respect to purchase of sim cards, recharge coupons - Held that:- Issue to be decided in favour of assessee as relying on case of Vodafone Essar Cellular Ltd. Vs. Asstt.CIT [2010 (8) TMI 691 - KERALA HIGH COURT] as held relationship of principal/agent is there and appellant is getting only commission out of it. Hence, there is no sale purchase and section 40A(3) is not attracted. Not allowing credit for income surrendered during the course of survey - Held that:- As appellant has himself credited unaccounted income in books of account after surrendering it during survey, A.O. should have given credit of such disclosure to appellant vis-a-vis undisclosed income determined by A.O. for the current assessment year. But appellant has already taken cash and deposited it in its books and all the additions made by A.O. in this order are on issues not related to survey viz., stock difference or any specific defect to be given set off amongst this suomoto crediting of cash of five lakhs. Hence, I do not find any reasons to telescope the addition made by A.O. to the extent of ₹ 5 lakhs surrendered by the appellant and immediately credited in cash book that is separate undisclosed income offered by the appellant not related to issues raised by A.O. in assessment.
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