2021 (3) TMI 981

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....terialize, which shows that the decision taken by the Ld. CITA) is self contradictory. 2 That on the facts and in circumstances of the case the Ld. CIT(A) has erred in allowing 50% relief to the assessee on the addition of Rs. 14,34,82,518/- in regard to advances received from Government Authorities, while rejecting the books of accounts of the assessee. Further the Ld. CIT(A) has remarked that the AO has taken the parties as non-existent, which is not correct as per the Remand Report submitted by the AO. 3. That on the facts and in circumstances of the case the Ld. CIT(A) has erred in allowing 50% relief to the assessee on the addition of Rs. 46,84,08,872/- being amounts shown by the assessee under the head other long term liabilities, on assumption basis, while rejecting the books of accounts of the assessee. 4. That on the facts and in circumstances of the case the Ld. CIT(A) has erred in allowing the ground of appeal of the assessee on the issue of stale cheque liability of Rs. 53,75,000/- while in his remand report the AO has reported that the genuinity of the parties could not be verified and established despite providing adequate opportunities to t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in the assessment order towards interest on income tax refund for AY 2009-10 (Rs. 83,44,069/), without appreciating that the appellant had neither received the said interest during the relevant previous year nor received any communication from the Department during the relevant previous year showing adjustment of above refund against the outstanding demand for any other assessment year(s) and the said fact has been accepted by the AO in his remand report. 8. That the appellant craves leave to add to and or amend, alter, modify or rescind the grounds hereinabove before or at the time of hearing of the appeal." 4. The assessee is a public sector company and is in the business of civil and structural contractors and filed its return of income on 26.11.2014. The revised return was filed on 29.03.2016 declaring total income of Rs. 23,99,88,870/-. The Assessing Officer completed the assessment u/s 143(3) of the Act on 30.12.2016 determining total income of Rs. 87,42,12,860/-. 5. The assessee carried the matter in appeal before the First Appellate Authority and the CIT(A) granted part relief. Both the assessee as well as Revenue are aggrieved by this order and have filed cr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(A)- From the remand report submitted by the A.O.. it is seen that regarding addition of Rs. 14,34,82,518/- all the advances have Therefore, the A.O.'s been received from Government Authorities. Therefore, the A.O's observation that the parties are not existing and, therefore, the advances are not genuine, does not seem to be correct. However, it is seen that all the advances are outstanding for more than 10 years. It is apparent that the assessee is deliberately not closing these accounts and most of the liabilities would never materialize. However, some liabilities out of these would definitely materialize and the assessee would have to pay part of these liabilities. Therefore, in my opinion, the assessee is not following proper accounting for the old outstanding liabilities by not settling these accounts. Therefore I hereby reject the books of the assessee and am estimating the profit of the assessee. In my opinion, the books of the accounts of the assessee should be rejected and 50% of these outstanding amounts should be added to the total income of the assessee. The A.O. is directed to act accordingly. Regarding addition of Rs. 46,84,08,872/- being amounts shown b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ance of Stale Cheque: During the course of assessment proceedings on perusal of Independent Auditors Report it was seen that in page 26 at 6(d) the auditors has comment that "Attention is invited to Note 19(a)/3) of the Balance Sheet wherein cheques aggregating to Rs. 53.75, lacs are lying as Stale Cheques Liability. The company has not been able to furnish the identity of the persons to whom such cheques were issued. " In this regard the assessee company was asked in this office letter No. 820 dated 30.11.2016 [vide Point (c)] to explain and ascertain regarding whether the said liabilities has ceased or not. The assessee was asked to submit comments by 12.10 PM on 09.12.2016 the date of next hearing fixed vide the above letter. The A/R of the assessee appeared on 09.12.2016 and submitted time petition which was considered and further date was fixed on 13.12.2016 vide order sheet Notings dated 09.12.2016. The A/R of the assessee appeared on 13.12.2016 and furnished an explanation on the other issues and remained silent on the issue of aforesaid liabilities on stale cheque. In view of that it is evident that the assessee had nothing to offer on the aforesaid liabil....