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TMI Blog2012 (8) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... m of Rs. 16,00,900 is credited in the capital account. Explanation was sought in this regard and reply of the assessee was that it was an advance payment remitted by M/s. India Gems and Beads, USA, for supply of goods, but due to inadvertence the said amount was credited to the accounts of the assessee in the balance-sheet. However, the Assessing Officer was not satisfied and he added the said amount of Rs. 16,00,900 in the income of the assessee and directed to initiate penalty proceedings also. The assessee preferred an appeal. The appellate authority, i.e., the Commissioner of Income-tax (Appeals)-II, Jaipur, vide his order dated April 28, 2009, was satisfied with the explanation/reply furnished by asses- see and deleted the said additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs and obviously in the account books it shall be an advance payment. The nature of any payment received cannot be decided with the accounting treatment given and, there- fore, in my considered view, even if due to mistake or mis understanding if the accountant has credited the said money into the capital account of the appellant it cannot become the part of capital and then obviously it shall be in the nature of advance payment which certainly cannot be part of revenue receipts because looking to the nature of business the revenue receipt shall be the export proceeds only and not the advance amount received. Even in the past when the advance amount received was more or less but they did not assume the character of revenue receipt and in fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder, directed to delete the said addition of Rs. 16,00,900. The finding of the Commissioner of Income-tax (Appeals) has been affirmed by the Income-tax Appellate Tribunal also. The question in the present case is only with regard to the explanation furnished by the assessee in respect of the disputed amount as to whether it is an income of the assessee or it was only an advance ? The accounts of the previous years were taken into consideration along with the explanation of the assessee and the Commissioner of Income-tax (Appeals) was fully satisfied with the explanation of the assessee and his finding has been affirmed by the Income-tax Appellate Tribunal also. The aforesaid question is only a question of fact and there is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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