TMI Blog2017 (4) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of the assessee for the next year i.e. F.Y. 2009-10. However, the relevant receipts/entries need to be verified by the AO. We accordingly restore this issue to the file of the AO for reconciliation of these entries and if the claim of the assessee is found to be correct, then no addition will be made in respect of the receipts already booked in the earlier assessment year. This issue is accordingly treated as allowed in favour of the assessee. Disallowing the set off of brought forward losses - Held that:- As submitted that information of brought forward losses was very much available on record before the AO in the form of schedule CFL of the e-return of income. Further, the tax auditor has also certified the details of losses and the copy of tax audit report was also available on record. Even the carry forward of losses could very well be verified by the AO from the earlier year assessment orders. He has further submitted that even the factum of brought forward losses can be well verified by the AO at this stage also. Considering the above submissions of the Ld. A.R., this issue is also restored to the file of the AO for verification and if the claim of the assessee is foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 49% share capital. The assessee is engaged in the business of publication of magazine in the gems and jewellery sector. For the assessment year under consideration, the AO noted from the balance sheet of the assessee that during the year, the share capital of the assessee has been increased by ₹ 4,00,00,000/- (Rupees four crores only). He asked the assessee to furnish necessary details in this respect. The assessee accordingly furnished the necessary details to the AO including the names of the subscribers, PAN numbers, annual financial report of subscribers, cash flow statements etc. However, the AO was not satisfied by the details submitted by the assessee and observed that the assessee has failed to prove the source, identity of the subscribers and the genuineness of the transaction. He, therefore, made the addition of the above amount of ₹ 4,00,00,000/- as unexplained credits under section 68 of the Act into the taxable income of the assessee. Being aggrieved by the order of the AO, the assessee preferred appeal before the Ld. CIT(A). 4. It was explained before the Ld. CIT(A) that during the year under consideration, the assessee had received share capital mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10-11. Moreover, during the assessment proceedings for the earlier assessment year A.Y. 2009-10, this issue was duly examined by the AO and being satisfied, no additions were made by him. In view of this, we do not find any infirmity in the order of the Ld. CIT(A) while deleting the addition of ₹ 2,94,00,000/- out of the total disputed addition of ₹ 4,00,00,000/-. 6. It is pertinent to mention here that the AO while computing the income of the assessee had wrongly mentioned the figure of addition of ₹ 6 crore whereas the total share capital introduced by the assessee was of ₹ 4,00,00,000/-. This fact has also not been disputed by the Revenue. We, therefore, do not find any merit in the appeal of the Revenue regarding the action of the Ld. CIT(A) in deleting the above addition of ₹ 2,94,00,000/-. Now coming to the assessee s appeal bearing ITA No.2259/M/2015. ITA No.2259/M/2015 (Assessee s appeal) 7. The assessee in its appeal has taken the following grounds: 1. That on facts and in law the CIT (A) erred in upholding addition to total income of ₹ 1.96 crores under section 68 of the Income Tax Act. 1.1 That on facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormation about the source and application of funds of M/s. Infomedia 18 Ltd. was also provided through cash flow statement. He, therefore, has submitted that the information about source of funds and application of funds was duly provided to the AO. The Ld. A.R. has further submitted that so far as the confirmation from the subscriber was concerned, the subscriber M/s. Infomedia 18 Ltd. has submitted that the above details were duly available in the financial statement of the subscriber M/s. Infomedia 18 Ltd. Moreover, all the relevant details such as address, PAN, ledger account of the assessee company in the books of M/s. Infomedia 18 Ltd. have been filed and the AO had not doubted the same. Moreover, the assessee had discharged the burden on its part and there was no contrary evidence before the AO to doubt the above transaction. 9. The Ld. D.R., on the other hand, has relied upon the findings of the lower authorities. 10. We have heard the rival contentions and have also gone through the records. As noted above, the assessee has duly furnished all the details and has also explained that the share application money was adjusted against the running account between the parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said income was duly accounted in the F.Y. 2008-09. However, the customers might have accounted the expenses in next year. Therefore, the said amount is appearing in form 26AS as income of F.Y. 2009-10. The Ld. A.R. bringing our attention to copies of the relevant ledger accounts has stated that all the entries of receipts have been duly accounted for and that the matter may be restored to the file of the AO for verification and reconciliation of these entries. 14. The Ld. D.R., on the other hand, has relied upon the findings of the lower authorities. After considering the relevant submissions, we are of the view that if the receipts have already been booked by the assessee in F.Y. 2008-09, the same cannot be booked as income of the assessee for the next year i.e. F.Y. 2009-10. However, the relevant receipts/entries need to be verified by the AO. We accordingly restore this issue to the file of the AO for reconciliation of these entries and if the claim of the assessee is found to be correct, then no addition will be made in respect of the receipts already booked in the earlier assessment year. This issue is accordingly treated as allowed in favour of the assessee. Gr ..... 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