9911796707
TMI Blog2023 (6) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-18. 2. Grounds raised by the Revenue are reproduced as under: "I. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred (i) in deleting the additions made by the A.O. of Rs.79,720/- under the head unaccounted cash found and of Rs.6,43,12,861/- under the head unaccounted stock found during the course of survey and (ii) in allowing the disallowance of Rs. 1 50,000/- claimed by the assessee u/s 80C of the I. T. Act:- (a) by admitting fresh evidences/documents such as paper book containing books of account and other documents produced before him without providing reasonable opportunity to the A.O. to examine such evidences in violation of Rule- 46A of the I. T. Rules, 1962. (b) by disregarding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60,63,300/-. A survey was conducted u/s. 133A of the Act at the business premises of the assessee on 28. 11. 2016. During the course of survey, certain discrepancies were noted in respect of cash in hand and the stock of goods for which details and explanations were called for by the Ld. AO. Assessee made certain submissions in response to the queries raised by the Ld. AO by filing the written submissions and other letters. Ld. AO also required the assessee to produce books of account for verification of the submissions made by the assessee. In this respect, Ld. AO noted that assessee had submitted only a typed copy of closing stock statement as on that date. For want of certain documents for substantiating the claims made by the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion so made. Thus, Ld. CIT(A) allowed the appeal of the assessee. Aggrieved by the same, Revenue is in appeal before the Tribunal. 3.3. Before us, Ld. DR has taken a ground that Ld. CIT(A) has admitted certain evidence and documents including books of account which were produced before him without providing reasonable opportunity of being heard to the Ld. AO so as to examine such evidence and the books of account which is in violation of Rule 46A of the Income-tax Rules, 1962 (hereinafter referred to as the "Rules"). Ld. CIT, DR contended that assessee did not discharge his onus and failed to produce the relevant documentary evidence during the course of assessment proceedings because of which additions were made by the Ld. AO in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the documents and records furnished by the assessee. We also direct that assessee be given opportunity to furnish his rejoinder on the remand report, if he so desires. Accordingly, ground no. 1 taken by the Revenue is allowed for statistical purposes. 4. Ground no. 2 is in respect of addition made by the Ld. AO towards difference in the total credit entry in the bank account and the gross sales as reported by the assessee in the P&L Account which is on account of VAT/ GST collection, as claimed by the assessee. 4.1 In this respect, assessee claimed that he has accounted for the sales and purchase under the exclusive method of accounting. Assessee submitted that he has booked sales excluding the tax amount of VAT/GST a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books of account is Rs. 53, 20,15,115/-. Thus, Ld. Counsel asserted that the addition made by the Ld. AO is under wrong notion of facts on record. 4.3. Ld. CIT, DR in this respect submitted that effective from AY 2017-18, income chargeable under the head "Profit & Gains of business or profession" has to be computed by filing the Income Computation and Disclosure Standard (ICDS) with either cash or mercantile system accounting regularly employed by the assessee. It was further stated that Sec. 145A prescribes that for the purpose of determining income chargeable under the head "Profits and Gains for business or profession", u/s. 145A(ii) the valuation of purchase and sale of goods or services and of inventory is required to be adjusted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s defined as under: ( a) "Revenue" is the gross inflow of cash, receivables or other consideration arising in the course of the ordinary activities of a person from the sale of goods, from the rendering of services, or from the use by others of the person' s resources yielding interest, royalties or dividends. In an agency relationship, the revenue is the amount of commission and not the gross inflow of cash, receivables or other consideration." 4.5. It was asserted that Ld. CIT(A) while giving relief to the assessee by deleting the addition has not taken into cognizance the provisions of section 145 read with section 145A(ii) and ICDS IV relating to revenue recognition. 5. We have heard the rival contentions and perused the materi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
