2021 (5) TMI 421

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on of addition of Rs..29,68,60,543/- made under section 68 of the Income Tax Act, 1961 ["Act" in short]. 2. The appeal filed by the assessee is delayed by 29 days, for which, the ld. Counsel for the assessee has filed a petition in support of an affidavit for condonation of the delay, to which; the ld. DR has not raised any serious objection. Consequently, since the assessee was prevented by sufficient cause, the delay of 29 days in filing of the appeal stands condoned and the appeal is admitted for adjudication. 3. Brief facts of the case are that the assessee filed its return of income for the assessment year 2013-14 on 01.11.2013 admitting a loss of Rs..23,632/-. The case was selected for scrutiny and notice under section 143(2)....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed and filed any material evidence, the Assessing Officer proceeded to conclude best judgement assessment under section 144 of the Act and the entire advances of Rs..29,68,60,543/- was brought to tax since the entire advance became doubtful and failed in proving the claim under the head 'advance from customers'. Further, in the return of income, the assessee debited a sum of Rs..6,46,390/- towards interest paid. The assessee has claimed the expenditure to the above advances under the head revenue expenditure and debited profit and loss account. Since the advances were shown as current liabilities and carried over to the succeeding years and there was no material evidence for its claim, the expenditure relating to interest payment was pur....