TMI Blog2015 (2) TMI 1312X X X X Extracts X X X X X X X X Extracts X X X X ..... it as assumed by AO and upheld by CIT(A). In view of the above facts and circumstances, we are of the view that trade advances cannot be treated as cash credit u/s. 68 and addition made and confirmed by lower authorities is deleted. - Decided in favour of assessee Addition being advance on account of amusement tax - addition under the sub head advance of amusement tax - HELD THAT:- Assessee made no argument qua this addition and even otherwise the assessee before CIT(A) also did not argue on this. The assessee has disclosed this amount as loans and advance under the head loans with revenue authorities under the sub head advance of amusement tax . It is not clear from the records that whether this is paid or not. Once this is not pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the Ld. CIT(A) was wrong in not considering the fact that all entries in cash book their respective ledger produced are supported by confirmation of parties and their identities, therefore, the addition of ₹ 31,86,500/- as unexplained cash credit on account of advance made by various customers (Farmers) which is completely arbitrary unjustified and baseless. 4.For that on the facts of the case the Ld. CIT(A) was wrong in not considering the fact that the advance made by the farmers for booking of potato seeds and all those persons have taken delivery of potato seeds later on against Sales bills, as such his finding is completely arbitrary unjustified and baseless. 3. Briefly stated facts are that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts shown in the books of account. The creditors also include the so called Sundry Creditors. In this case by merely giving their name, without address or other details, which would have enabled A.O., to cross-verify assessee's claim does not discharge his onus. The issue was of cash credit. The onus can be discharged by furnishing identity, creditworthiness and genuineness of transaction. The identity has not been proved in all the cases. The creditworthiness has not been proved in any of the cases, as no evidence of the sources of the income of the persons or confirmation from the creditors has been filed. Genuineness of transaction has also not been proved in any of the cases as all the transactions were allegedly done in cash, thus l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Punjab. The assessee s books of account are complete in all respect including the bills and vouchers for purchase and sales. The AO during the course of assessment proceedings could not point out any defect in the same and this particular advance of ₹ 31,86,500/- is adjusted against the sales made by the assessee to various parties and from the bank account it can also be verified that the same is used for purchase of potatoes and potato seeds from Punjab. Ld. Counsel for the assessee stated that complete details were produced and this being trade advance, cannot be added by invoking the provisions of section 68 of the act. We find that the plea of assessee is quite reasonable that this being trade advance by very nature of activity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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