TaxTMI 
TaxTMI 
2019 (10) TMI 294
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....at the assessee has accepted the advances from customers amounting to Rs. 4,98,49,526/- as per Balance Sheet shown under the head 'current liabilities' and creditors for advances for an amount of Rs. 1,80,60,116/- aggregating to Rs. 6,79,29,642/- as follows: (a) Advances from Customers Rs. 4,98,69,526/- (b) Creditors for advances Rs. 1,80,60,116/- Total Rs. 6,79,29,642/- 3.1. During the assessment proceedings, the assessee was asked to furnish the details of creditors for goods along with confirmations and also creditors for advances for which no confirmations were filed by the assessee. Since the assessee failed to produce any details relating to creditors for advances amounting to Rs. 6,76,29,642/- consisting of advances from customers Rs. 4,98,69,526/- and creditors for advances for an amount of Rs. 1,80,60,116/- aggregating to Rs. 6,79,29,642, treated the same as not genuine and accordingly made addition of Rs. 6,79,29,642/- as unexplained income in the hands of the assessee. 4. Against the order of the AO, the assessee went on appeal before the CIT(A) and filed the written submissions before the CIT(A). The Ld.CIT(A) called for the reman....
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....nature, which does not require specific adjudication. 8. Ground No.2 is related to the addition deleted by the Ld.CIT(A) amounting to Rs. 5,37,236/- out of the total advances received from the customers amounting to Rs. 4,98,69,526/- forming part of the aggregate addition of Rs. 6,79,29,642/-. During the appeal hearing, supporting the ground raised by the department in grounds of appeal, the Ld.DR argued that it is evident from the order of the Ld.CIT(A) that the assessee has accepted the advances of Rs. 5,37,236/- during the previous year relevant to the A.Y. 2012-13. Since the assessee failed to submit the required details to establish the identity and credit worthiness of the creditors, the Ld.CIT(A) ought to have upheld the addition of Rs. 5,37,236/- instead of deleting the entire addition. Therefore, the Ld.DR requested to set aside the order of the Ld.CIT(A) and confirm the addition of Rs. 5,37,236/- out of the customer advances of Rs. 4,98,69,526/-. 9. On the other hand, the Ld.AR fairly conceded for confirming the addition of Rs. 5,37,236/-. 10. We have heard both the parties and perused the material placed on record. Out of the customer advances of Rs. 4,98,69,526....
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....t year and were in the nature of trade credits and not cash credits. The trade advances were subsequently offered as income in the relevant previous year of sale transaction of lifts. The assessee also produced party- wise copies of completion of work certificates issued by the assessee company in which cases, the assessee has completed the work of creation of lifts in the subsequent years along with respective ledger account copy. Returns of income filed by the assessee in subsequent assessment years confirmed the contention of the assessee. All the credits were adjusted towards sales are trade credits and not cash credits. The Ld.CIT(A) further observed that the assessee has furnished the required details and discharged it's burden and the AO did not make any enquiry to hold that the advances received in question were not genuine. Therefore held that the AO made the addition on surmises and conjectures and accordingly deleted the addition. We reproduce hereunder para 8.3.3. to 8.3.4. of the order of the Ld.CIT(A) which is available in page No.19 which reads as under : "8.3.3. Assessing Officer did not controvert the fact that the advances received by appellant through....
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.... the assessment proceedings, as well as during the remand proceedings. Therefore requested to uphold the order of the AO and set aside the order of the Ld.CIT(A). 13. On the other hand, the Ld.AR submitted that the assessee has produced the books of accounts, bills and vouchers during the assessment proceedings which contain the details of advances received with clear address of the customers etc. Therefore, there is no failure on the part of the assessee during the assessment proceedings in the submission of the details. The Ld.AR further invited our attention to page No.4 and 5 of the paper book, wherein the details of advances received from creditors were made available party-wise. The assessee referring to page No.11 of the paper book furnished the details of the sales made against the advances received representing the customer advances of Rs. 1,80,60,116/- as per paper book. The assessee has accounted the sales in the subsequent year i.e. 2013-14, 2014-15 and 2015-16. The assessee also enclosed the copy of the sales register in page No.12 to 22 of the paper book, as per which the assessee has affected the sales in the subsequent assessment year 2012-13 to 2015-16. In th....