TaxTMI 
TaxTMI 
2018 (5) TMI 48
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.... assessee did not furnish the details. The A.O. also asked the assessee any interest accrued to the assessee is transferred to suspense account but the assessee could not explain the same. Therefore, the A.O. treated the entire amount of Rs. 3,48,07,610/- outstanding in suspense account as unexplained and accordingly, brought to tax. However, a sum of Rs. 1,01,52,347/- was stated to be related to the earlier assessment year i.e. 2008-09 hence the same was excluded and the balance amount of Rs. 2,46,55,263/- was brought to tax as unproved liability by the A.O. and added to the total income. 3. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A). Before the Ld. CIT(A), the assessee filed additional evidence i.e a detailed chart containing the details for each amount forming part of the addition of Rs. 2,46,55,263/-. The CIT(A) forwarded the details to the A.O. calling for the remand report and the A.O.has submitted the remand report. In the remand report, the A.O. has accepted a sum of Rs. 7,74,440/- relating to the following items for deletion. F.R. cost Rs.1,09,462/- PF total Rs. 9,796/- Establishment and contingencies Rs. 6,55,182/- Rs....
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....nd constitutes the (i) Borrower's margin money for long term loans received upfront for releasing the customers along with the loan amount from bank. These are also called down payments. (ii) Receipts from customers towards repayment of loans or deposits for which exact number did not match, which are temporarily credited to this account till such time matching accounts are found and transferred. (iii) Employees benefits retained for want of settlement of court cases, enquiries, etc. (iv) the grants or incentives or subsidies for a Government like debt waiver scheme, SC Corporation, DRDA, BC Corporation which are credited to this account on receipt. Subsequently they are released to the benificiaries by debiting this account. Generally these amounts are to be adjusted to the beneficiary loan account only after prompt repayment of the last instalment. Till such time, the amount will remain under this head of account sometimes if the beneficiary is not located the said amount shall be returned to the government. 8.1 The assessee submitted before the A.O. that the account is continuous running account and sort of an intermediate account in which the amounts of the above natur....
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....ccount. b) Janata Personal Accident Insurance premium collected from customers are credited to this account and will be remitted to Insurance Company by debiting this account. c) Collection from PACS towards repayment of ICDP dues (Integrated Cooperative Development Project) will be initially credited to this account and periodically remitted to ICDP by debiting this account. d) Deposit towards Election expenditure remitted by PACS will be credited to this account and later spent/returned by debiting this account." Assessee argued that the amounts are not debited to the P&L account and the account is running account. These are in the nature of regular transactions and no abnormalities have been pointed by the cooperative audit teams or tax auditors and argued that no addition is called for. The CIT(A) deleted the addition holding that the transactions are regular transactions and no abnormalities are found. The ld.CIT(A) followed the order of the in the assessee's own case for the earlier assessment year i.e. 2008-09. 11. Suspense account short term loan disbursement - Rs. 18,26,697/-: The AO in the remand report submitted to the CIT(A) stated that the outstanding amoun....
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....he Bank sanctions the LONG TERM loans and after sanction, the said loan amount is debited to PACS Loan account and credited to Suspense LONG TERM Loan Disbursement account. Whenever, the Borrowers / Farmers approach Bank through their PA Cs, the Bank disburses the loan to beneficiaries by debiting this account. This account is also stated to be an intermediate account maintained for the purpose of holding the loan amounts sanctioned to beneficiaries till the date of actual disbursement to them. The AR further stated that this account is also a running account and transactions are voluminous in nature. The AR furnished the relevant copies of relevant ledger extracts of Kotabommali Branch, alongwith the vouchers in support of disbursement for verification as an example. It was explained by the assessee to the AO that the amounts outstanding are part of regular business activities of the bank. The nature of outstanding amounts under this account is not covered under Section 43B of the IT Act. Considering the voluminous transactions occurring in the above account across numerous branches of the bank, the AO requested the Ld.CIT(A) to decide the issue on merits. 12.1 The Ld.CIT(A) cons....
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....year no such addition was made. The ld CIT(A) further observed that none of these items were charged to the P&L account and accordingly deleted the addition. 14. Aggrieved by the order of the Ld.CIT(A), the revenue is in appeal before this Tribunal. Appearing for the revenue, the Ld. D.R. argued that there was an amount outstanding to the extent of Rs. 2,33,47,196/- out of which the CIT(A) has confirmed the addition of Rs. 3,040/- relating to suspense account saleables and the remaining addition was deleted. During the appeal hearing and before the CIT(A) and the A.O. in the remand proceedings, the assessee has explained the nature of transactions but not furnished the specific details item wise, party wise and the nature of each transaction. The date of transaction recorded, when the transaction was squaredup etc. In the absence of specific information, the credits appearing in the books of accounts under the suspense accounts should be treated as an income and required to be brought to tax. Accordingly, the Ld. D.R. argued that the A.O. has rightly made the addition, hence requested to confirm the same and uphold the order of the A.O. 15. On the other hand, the Ld. A.R. submitt....