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Principal Commissioner of Income Tax, Durgapur Versus M/s. Dutta Automobiles Pvt. Ltd.

2016 (6) TMI 115 - CALCUTTA HIGH COURT

Addition u/s 68 - whether the receipt has satisfactorily been established to be on account of advance payment? - Held that:- As held by ITAT the advance money, in the present case before us, is adjusted the sale price of the motor cycle and sale is disclosed in the return of income i.e. the trading account of the assessee. Accordingly, we find no ambiguity in the system followed by the assessee.

The aforesaid finding was recorded by the learned Tribunal on the basis of evidence disclo .....

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- Decided in favour of assessee. - GA 1116 of 2016, ITAT 142 of 2016 - Dated:- 17-5-2016 - Girish Chandra Gupta And Asha Arora, JJ. For the Petitioner : Mrs. Smita Das De, Adv. Mr. J. P. Khaitan, Sr. Adv. Mr. S. Bhowmick, Adv. Mr. C. S. Das, Adv. ORDER The Court : The appeal is directed against a judgement and order dated 5th October, 2015 passed by the Income Tax Appellate Tribunal C Bench, Kolkata in ITA no.407/Kol/2015 pertaining to the assessment year 2010-11. Aggrieved by the order of the .....

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res was found credited to the books of accounts of the assessee allegedly on account of advance received from the buyers of motor cycles. The Assessing Officer was of the opinion that a bogus liability was created and he, therefore, added the amount to the income of the assessee. The CIT(A) concurred with the Assessing Officer and added another ground that payments were all received in cash. He was of the opinion that the assessee had failed to discharge the burden that the aforesaid credit entr .....

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mitted by both the sides. The issue is whether the assessee is consistently following certain system of accounting which had been accepted by the department from the very beginning and even in future years. There is no change of system of accounting followed by the assessee. Allowing the department to adopt a different approach altogether in this assessment year in question would create an anomalous situation as far as the assessee is concerned. The issue that the dealer receiving advance money .....

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uity in the system followed by the assessee. From the details filed before us, Ld. DR could not point out the discrepancy in the same because these advances were adjusted against sales. When this was pointed out to Ld. Sr. DR, he stated that the assessee is unable to produce the PANs, names and addresses of the parties. He was specifically shown a tax/retail invoice wherein complete details were given except the PAN/Voter I. Card. In our view, PAN/Voter Identity Card is a KYC norm, which does no .....

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ok used before the learned Tribunal in order to show that all particulars were duly produced before the learned Tribunal as also before the Assessing Officer and the CIT(|A). The Assessing Officer and the CIT(A) chose to draw an inference unfavourable to the assessee because they insisted upon records which are not legally required. It was not required by law that before taking advance from the customers of motor cycles, the assessee should have obtained their PAN Card number. The assessee has t .....

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