9911796707
TMI Blog2024 (9) TMI 1559X X X X Extracts X X X X X X X X Extracts X X X X ..... ments and evidences except some party lists and basic details, thus rendering the Order of the Ld CIT(A) perverse. 3. The Ld CIT(A) has erred in deleting the addition without either ascertaining further facts from the Assessing Officer or cause further enquiry to establish factual correctness of his decision. 4. Given the fact that, the assessee furnished certain details only towards the fag end of the assessment, the Ld. CIT(A) ought not to have concluded that AO has failed to make any enquiries when there is no scope for the same and therefore, the matter may be remitted back to the AO for verification and scrutiny. 5. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored." 3. The brief facts of the case are that, the assessee is a private limited company engaged in the business of export of pulses and spices in the name and style of M/s. Avilaa Exports Private Limited. The assessee is a 100% exporter and is part of the Government of India recognized Star Export House. The assessee-company had e-filed its return of Income u/s 139(1) of the Act on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and other details as well as genuineness of amount received from countries outside India. 18.4 The assessee has submitted documents but on perusal of the same, it could not found to be self explanatory and corroborative to the claim being made by the assessee. Had reasonable justification supported by documentary evidence been provided by the assessee, then claim of the assessee could have been considered on merit. However it is humbly stated that in the opinion of the assessing officer, the huge amount of credit in the bank account of the assessee remained unexplained under the provision of section 68 of the Act. Hence the amount of Rs. 1388331016/- is added back to the total income of the assessee as per the provisions of Section 68 of the Act rws 115BBE taxed @60% and added back to the total income of the assessee. Penalty u/s, 271AAC(1) of the Act is separately initiated. 19. Subject to the above, the total income of the assessee for the A.Y. 2017-18 is computed as under :- Particulars Amount (Rs.) Return Income 57,64,200 Add: Unexplained cash credit u/s. 68 of the Act rws 115BBE taxed @60% as discussed above 138,83,31,016 Total income Rounded off to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while framing the assessment under section 144 r.w. section 147 of the Act in the absence of satisfactory explanation from the appellant's side. The appellant submitted before the AO, as evidenced from the assessment order itself that the Source of the credits in the bank accounts of the assessee company was due to the huge turnover of the company. During the assessment proceedings, the assessee, vide reply dated 29.03.2022, explained in detail the party-wise receipts in the bank accounts and highlighted the fact that the turnover of the company during the year was Rs. 178 crores and the credits in the bank accounts were actually consideration received from the said turnover. The bank receipts were due to export sales made, and the same were duly accounted for in the books of accounts of the company. Thus, it is noted that there is no dispute between the AO and the assessee that the alleged amount of addition of Rs. 138,83 crores constitutes cash credits received in the bank accounts held by the appellant company during the year. The said bank receipts were received from parties to whom sales was made and the sales with respect to the same have been shown as income as it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the information and details. It is reiterated that the source of credits in the bank account of the appellant company was the proceeds of the turnover, which are reflecting in the profit and loss account of the appellant company. Thus, the addition under section 68 made by the AO, ignoring the evidence submitted during the course of assessment proceedings, is beyond the jurisdiction of the AO as the turnover is already reflected in the books of the assessee. Moreover, the gross sale receipts cannot be brought to tax, specifically when it was specifically proved with evidence explaining in detail the party-wise receipts in the bank accounts, that the credit in the bank accounts of the assessee company are nothing but the realization of sale proceeds and duly recorded in the books of accounts. Hence, it can be conclusively said that the turnover of the appellant company for the year under consideration was duly considered as income as Sales Turnover, and therefore, the addition of the same has resulted in double taxation of the same revenue. Once the amount is declared as turnover, it cannot be treated as unexplained cash credit under section 68 of the Act, and if the sales turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 2017-18, as per the details available on record, the assessee company has huge credits in their bank account aggregating Rs. 138,83,31,016/- and based on such information notice u/s. 148 was issued and later the assessee could not file the return due to technical glitches. However, the assessee filed the details of computation of total income, financials and other particulars were submitted before the AO. The Assessee also filed the details of Turnover achieved for the 3 preceding assessment years along with the present assessment year as below: AY Turnover 14-15 1,42,87,04,088.00 15-16 1,60,79,51,656.00 16-17 1,67,26,75,062.00 17-18 1,78,81,73,712.00 9. In support of the turnover achieved of Rs. 178.81 crores, the assessee furnished the monthly GST returns filed correlating with the financials reported and explained that the source for credits in bank account is out of the export turnover of the assessee. However, the AO, NFAC concluded the assessment considering the income filed in the original return of Income u/s. 139(1) by making the addition of bank credits as "unexplained cash credits" to the tune of Rs. 138,83,31,016/- by passing an order u/s. 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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