2020 (1) TMI 652

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....ions of the learned Standing Counsel appearing for the appellant and we have perused the material record. The facts, which require a relevant mention, in brief, are as follows: The assesse is doing business of multi facility cold storage project and trading in agricultural commodities. It filed its return of income for the assessment year 2011-12, on 30.09.2011, admitting total loss at Rs. 3,34,690/-. Assessment under Section 143(3) was completed, on 14.3.2014, assessing the total income at 'nil' after making certain additions/disallowances. The income so assessed was set off against brought forward losses of earlier years. The assesse filed an appeal before the CIT(A) questioning the disallowance made under Section 40(a)(ia) of the I....

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..../ invoices, without the support of stock records to substantiate the sales, is correct in agreeing with the assesse that the sundry creditor Sri Nagendra Kumar account was closed by way of supply of apple/tamarind/potatoes in the subsequent financial year and deleting the addition of Rs. 38,50,000/- which was already upheld by the CIT(A) towards such unproved sundry creditor, when the assesse failed to discharge its responsibility to prove the genuineness of the transaction and also the identity and creditworthiness of the sundry creditor?" In support of the submission that the above substantial questions of law are involved, it is further contended that the Tribunal grossly erred in directing deletion of the addition in respect of sundr....

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....11to 10.12.2011. No evidence was brought on record to show that the sales for the subsequent assessment year were not accepted by the AO or false.' The reasons for the Tribunal recording a finding in favour of the respondent herein are as under: - 'For a query from the bench the Ld.AR submitted that the sales were accepted by the AO in the subsequent year and there was no addition or relief was given to the extent of the sales made to the trade creditor. The receipt of advances from customers is a starting point and conclusion of transaction is the relevant sales. Therefore, receipt of advances required to be examined along with sales made by the assesse with stock register. Advances from customers, purchases, stock register and sales ac....