9911796707
TMI Blog2023 (2) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of the case in confirming addition u/s 68 made by Assessing Officer amounting to Rs.11,181,536/-. 2. The Hon'ble CIT (A) erred on facts and circumstances of the case in not allowing the deduction of dividend income amounting to Rs.1,524,221/- being the income credited to inventory and claimed on proportionate basis." 3. Brief facts of the case are that, the assessee filed its return for the Assessment Year 2014-15 declaring income of Rs. 85,37,59,040/- under normal taxation and Rs.87,14,66,112/- as book profit under MAT. The case of the assessee was selected for scrutiny and assessment proceedings have been initiated. Assessment order came to be passed on 16/12/2016 by making addition of Rs. 1,11,81,536/- u/s 68 of the Act an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee 7. It is the specific case of the assessee is that the advance has been received by the assessee towards the sale of the flat and the same will be handed over only on the receipt of full amount of sale price. Therefore, the assessee has not verified the creditworthiness of the parties making the booking as a customer can make the booking through its own funds as well as borrowed funds, thus produced financial statements, but did not produce the portion certificate and also submitted copies of the financial statement of the companies as extracted from ROC Website. The Ld. A.O. was not satisfied with the clarifications given by the assessee and made addition of Rs. 1,11,81,536/- as unexplained cash credit u/s 68 of the Act and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 9. The Ground No. 2 of the assessee is in respect of not allowing the deduction of dividend income amounting to Rs. 15,24,221/-. The Ld. A.O. on perusal of the assessee's computation of income found that the assessee had decreased the dividend on unit of mutual fund/shares (offered for tax earlier) as cost of sales. When the assessee was confronted by the A.O., the assessee had made a reply stating that "the assessee has earned divided income in previous year and credited the same into inventory and offered for tax in respective years although the dividend income was exempt. The said amount has been deducted in the computation in the ratio of cost of goods sold". The Ld. A.O. was of the opinion that the tax exempt income even if not in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard the AO has observed that the tax exempt income even if not inventoried earlier would not have yielded any tax. Accordingly, the AO has made an addition of Rs. 15,24,221 /- to the income of the appellant company. Considering the facts of the case, I am of the view that there is no merit in the submission of the appellant company. Accordingly, the addition of Rs. 15,24,221/- to the income of the appellant company is upheld. Ground No. 2 is decided against the appellant." 11. During the assessment proceedings the Ld. A.O. found that the assessee company had decreased the dividend on unit of mutual funds/shares (offered for tax earlier) as cost of sale. The assessee was also confronted by the A.O. that the benefit of the amount which i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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