2020 (7) TMI 540
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....tly sustained the various additions made by the AO. 3. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal by raising the following grounds:- "1. For that the Id CIT(A) grossly erred in inferring that there exists a difference of Rs. 20,90,000/- in the opening balance in the account of M/s. Gulab Farms Pvt. Ltd. and in erroneously adding the same to the income of the appellant as alleged unexplained credit. For that being unsustainable both in law and facts, the addition so made is liable to be deleted. 2. For that the Id CIT(A) erred in inferring that there exists a difference of Rs. 5,21,935/- in the account of M/s. V.C. Solutions (P) Ltd. and in erroneously adding the same to the income of the appellant as alleged unexplained credit. For that being unsustainable, the addition so made is liable to be deleted. 3. For that the Id CIT(A) erred in arbitrarily dismissing the contention of the appellant that the addition of Rs. 4,20,000/- made by the Id Assessing Officer as notional income from Flat No. F-2, Palam Marg, Vasant Vihar, New Delhi is not sustainable in view of the provisions of section 23(l)(c) of the Income-tax Act, 1961. For th....
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....of Rs. 38,63,250/- on the basis of confirmation filed by M/s. Gulab Farms P. Ltd. including three bills No. 259, 260 & 269 amounting to Rs. 24,40,125/- (Bill No. 259 & 260) and Rs. 14,23,125/- respectively. From the assessment order, it is evident that these three bills were accounted for by M/s. Gulab Farms P. Ltd. for the period ending on 31.03.2010 whereas these bills pertained for the sales made on 12.05.2010 and 25.05.2010 i.e. sales for the subsequent financial year and not related to the period relevant to assessment year under consideration. Due to this reason, Assessing Officer treated the amount of Rs. 38,63,250/- as amount received against services/supplies made and not as an advance. However, this issue was remanded to the Assessing Officer, and the submissions made in the remand report, reproduced above, are self explanatory on the issue involved. On careful perusal of copy of ledger account of M/s. Gulab Farms P. Ltd. in the books of the appellant filed during the appellate proceedings revealed that the opening credit balance was shown at Rs. 45,50,280/- however during the remand proceedings, Ld. AR has filed copy of ledger account of the appellant in the books of M/s....
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....es to the appellant against which supplies were made by the appellant in the period subsequent to assessment year under consideration vide three bills i.e. Nos. 259, 260 and 269 totaling to Rs. 38,63,250/-. No adverse comments have been provided by the Assessing Officer as far as above three bills are concerned which pertained to the period subsequent to assessment year under consideration as per details available on record. However, there is found to be difference in the opening balance in the claim of advance received by the assessee from M/s. Gulab Farms P. Ltd. to the extent of Rs. 20,90,000/- (Rs. 66,40,280/- minus Rs. 45,50,280/-), which Is being treated as unexplained credit not recorded in the books of account maintained during the normal course of business. Accordingly, the same is being treated as income of the assessee for the liability out of books of account to be met out of income not recorded in the books. However, appellant gets part relief of Rs,17,73,250/- in respect of this ground of appeal." 8. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal. 9. The ld. Counsel for the assessee submitted that the ld.CIT(A) did not appreci....
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....e opening balance in the books of the assessee as well as M/s Gulab Farms Pvt. Ltd., and decide the issue as per fact and law. Ground No.1 by the assessee is accordingly allowed for statistical purposes. 12. So far as Ground No.2 is concerned, the facts of the case, in brief, are that an amount of Rs. 22 lakhs was paid by M/s V.C. Solutions as consultancy charge to the assessee for the year under consideration, but, no income was shown by the assessee on this amount and no satisfactory explanation was given by the assessee. The AO, therefore, made addition of Rs. 22 lakhs to the total income of the assessee. In appeal, the ld.CIT(A) deleted the addition of Rs. 22 lakhs, but sustained the addition of Rs. 5,21,935/- by observing as under:- "4.4 On this issue, the addition has been made by the AO on the same basis as was made in respect of other advances received from M/s. Gulab Farms P. Ltd. and M/s. Columbia Estates P. Ltd. In the remand report, AO has reported that during the remand proceedings, M/s. V.C. Solutions P. Ltd. failed to file the ledger account of the appellant in its books of accounts despite being given the opportunity to provide the same, therefore, he held that ....