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2020 (5) TMI 231 - AT - Income TaxSuppression of sales - sales are entered in the sales register and the figure of sale amount shown in profit & loss account - HELD THAT:- AO has referred in his order the stock statement as sales register, which in fact was the statement of stocks showing the inward & outward quantity of materials received. It is primarily maintained for the status of stocks (in quantity) position of the company. Value of the sales are entered in the sales register and the figure of sale amount shown in profit & loss account is in agreements with the figure shown in the sales register - As explained to AO that the same was entered into the stock register because of the wrong setting of accounts in the computer system. As such it was wrongly entered into the stock register. Assessing Officer’s attention was also drawn on the fact that had the same has been sales, there would have been an entry of stock quantity in the outward column. The assessee company, also produced the bank statement and the ledger copy of the party, but ignoring all the evidences produced before him, the Assessing Officer has treated this amount as suppressed sales, which is completely unjustified. Counsel explained the Bench with help of reconciliation statement that the entry in the stock register dated 08.08.2013 relates to advance received from M/s Bagaria Brothers Pvt. Ltd. of ₹ 1,75,00,000/- which has been inadvertently entered into the stock register and therefore it resulted into difference but if the said sum is excluded then there will not be any difference in the quantity of the stock register. The ld. D.R. has also fairly agreed with the reconciliation of stock submitted by the assessee, as noted above. Considering the explanation submitted by the assessee and taking into account the stock reconciliation statement, we note that there is no any suppressed sales, hence we delete the addition. Ground of assessee allowed. Disallowance of operating expenses - HELD THAT:- Reconciliation of the operating expenses has neither been examined by Assessing Officer nor by ld. CIT(A). Therefore, ld. Counsel prayed the Bench that this issue may be remitted back to the file of Assessing Officer for his examination. Ld. D.R. did not have any objection if the matter is remitted back to the file of Assessing Officer for fresh adjudication. We have heard both the parties and perused the material available on record. We note that one more opportunity should be given to the assessee to explain the above mentioned reconciliation of operating expenses and justification thereof. Ground raised by the assessee are allowed for statistical purposes. Addition of travelling expenses - Allowable business expenses - HELD THAT:- As Counsel submitted that now assessee is ready to submit the vouchers and bills of the travelling expenses therefore, one more opportunity should be given to the assessee to explain the genuineness of the travelling expenses before Assessing Officer therefore the matter may be remitted back to the file of the AO.The ld. D.R. for the revenue did not have any objection if this ground is remitted back to the file of AO.Therefore, we are of the view that one more opportunity should be given to assessee to plead his case before Assessing Officer. Therefore, we set aside the order of ld. CIT(A) and remit the issue back to the file of Assessing Officer for de novo adjudication.Ground raised by the assessee are allowed for statistical purposes. Addition under the head subscription and donation - assessee failed to produce relevant bills and vouchers before Assessing Officer - HELD THAT:- As Counsel prayed the Bench that if an opportunity is given the assessee is ready to make compliance. Therefore one more opportunity should be given to assessee to plead his case before Assessing Officer. Therefore, we set aside the order of ld. CIT(A) and remit the issue back to the file of Assessing Officer for de novo adjudication. Ground raised by the assessee are allowed for statistical purposes.
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