TaxTMI 
TaxTMI 
TaxTMI 
2015 (2) TMI 53
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....provider had no revenue effect in this case. 1(b) On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 1.40 crore without fully appreciating the fact that the MD/Chairman of the assessee company, surrendered this amount of Rs. 1.40 crore as undisclosed income. 2. The order of the Ld. CIT(A) is erroneous and not tenable in law and on facts. 3. The appellant craves leave to add, alter or amend any / all of the grounds of appeal before or during the course of the hearing of the appeal." 2. The facts in brief are that the assessee company filed return of income declaring loss of Rs. 46,88,8401/- on 28.1.2006. It was further revised and declared NIL income. Statutory notices were sent....
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....h us specially the impugned orders passed by the Revenue Authorities and we are of the considered view that Ld. First Appellate Authority has concluded the finding on the issue in dispute in para nos. 3.3 to 3.3.2 of the impugned order and for the sake of convenience we reproduce the same as under:- "3.3 I have considered the facts of the case. It is seen that AO has only tried to justify in this order his stand that the invoice of Rs. 1.40 crores from M/s B.T.Technet Ltd to the appellant is in the nature of accommodation entry based on the statement of Sh. S.K.Gupta. Though he has not been able to rebut totally the claim of the appellant that in its. case it is not the case of accommodation entry but there was a real transaction, but even....
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....the assessment order it appears that AO has not bothered to see the P&L account and b/s of the appellant.) Even final printed balance sheet has also been produced before the undersigned and on going through the P&L account, it is seen that amount of Rs. 1.40 crores has not been debited in the P&L account; rather the same has been shown as advance in the balance sheet and grouped under the sub head 'Loans and advances' in the asset side. [Thus as per principle of accountancy also an amount which is appearing as advance could not have been debited in the P&L account.] Thus, though on the day of survey this invoice was not recorded in the books of the appellant company (the intention of the appellant might be to claim this sum as bogus....
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....here is no revenue effect in the case of the appellant based on this invoice. The addition so made by the AO is, therefore, directed to be deleted. " 7. After going through the aforesaid impugned order passed by the Id First Appellate Authority, we are of the view that First Appellate Authority considered the facts of the case and observed that AO has only tried to justify in this order his stand that the invoice of Rs. 1.40 crores from M/s B.T.Technet Ltd to the assessee is in the nature of accommodation entry based on the statement of Sh. S.K.Gupta. Though he has not been able to rebut totally the claim of the appellant that in its case it is not the case of accommodation entry but there was a real transaction, but even if an invoice is ....
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....duced before the undersigned and on going through the P&L account, it is seen that amount of Rs. 1.40 crores has not been debited in the P&L account; rather the same has been shown as advance in the balance sheet and grouped under the sub head 'Loans and advances' in the asset side. [Thus as per principle of accountancy also an amount which is appearing as advance could not have been debited in the P&L account.] Thus, though on the day of survey this invoice was not recorded in the books of the appellant company (the intention of the appellant might be to claim this sum as bogus expenditure but in view of the survey conducted by the department on 27.12.2006, in the final books of accounts which is finalised as on 31;10.2007, this am....