TaxTMI 
TaxTMI 
2013 (10) TMI 1070
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act, 1961 ('the Act' hereinafter) for the said order. 2. At the very outset, it was inquired by the Bench of the learned DR if the Revenue is in appeal; the first appellant authority having granted substantial relief in appeal, and to which he confirmed in the negative, i.e., as being not so, and upon which the hearing in the matter was proceeded with. The appeals raising common issues were heard together and are, accordingly, being disposed of by a common, consolidated order. 3. Opening the arguments, it was submitted by the learned Authorized Representative (AR), the assessee's counsel, that it is not pressing the legal ground/s challenging the initiation of search and, consequently, the validity of the assessment framed in pursuanc....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... cash receipt/s for Rs.16,79,150/- for the assessment year 2006-07; it being unable to explain cash credits to that extent in terms of section 68 of the Act. As regards the addition for A.Y. 2008-09, however, we find little merit in the Revenue's case in the absence of any material leading to the inference of additional income, i.e., separate and apart from Rs.16.79 lacs made and sustained for A.Y. 2006-07, for that year, i.e., A.Y. 2008-09. The director may have offered the additional income, what is though required to be seen is the reason for which he does so. If the basis of the same, as explained to us during hearing by the ld. AR, to no rebuttal by the ld. DR, is the said cash vouchers, addition qua which stands already made for A.Y. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f account, but also that there are no other changes therein with reference to the audited final statements. The audit of accounts does not lead to any variation in any expenditure, though ma y result in a different treatment being accorded to an expenditure alread y incurred and booked. Surely, it is not a case of an error or omission being rectified by the auditors. Again, small or minor differences are understandable, particularly where the unaudited accounts bear the relevant expenditure, while in the instant case, as the ld. DR would submit before us, there is no expenditure either under the head 'consultancy fees' or 'sundry debts written off' in the accounts found during survey. True, the said accounts were not audited, but the audito....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned sums stands, in fact, incurred by the assessee during the relevant year or not. Why, even as observed during hearing itself, an expenditure even not booked could be claimed where actually incurred and otherwise deductible? The passing of the entries in the books of account only implies recognizing the same in accounts. Also, there is no bar per se in passing the accounting entries pertaining to a transaction during the year after the close of the year, and what would become relevant, i.e., from the verification stand point, is the genuineness of those transactions and matters incidental thereto; viz. how and why they remained to be accounted for in the first place; the reason for non-payment even six months after the close of the releva....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... clarification with regard to the impugned claim/s. It has even not as much as stated the date on which the balance-sheet for the year was approved by the Board of Directors prior to being given to the auditors for their opinion thereon. It needs to be appreciated that independent and de hors the Revenue's case, which has not found our favour, the onus to establish its claims per the ROI is only on the assessee. 7.3 Continuing further, we find that two of the three amounts involved, i.e., qua audit fees and consultancy fees, represent contractual obligations. The audit fee, or its parameters, is finalized at the time of the appointment (or reappointment) of the auditor, i.e., the last Annual General Meeting (AGM). In fact, the difference....
X X X X Extracts X X X X
X X X X Extracts X X X X
....obtained after the close of the year could also be taken into account, but only so far as it relates to an assessment of and, consequently, the determination of the amounts relating to the conditions as they exist as at the year-end. The reason for the same is simple: the accounts being closed year-wise, and the balance-sheet represents the state of affairs obtaining as on that date, subject of-course to the information available (as on the date of preparation of the balance-sheet), so that it represents the best estimate possible in light thereof. It is only in extra-ordinary circumstances, where the substratum of the concern, viz. the going concern premises, is impacted and comes under doubt that, even though occurring after the balance-s....