TaxTMI 
TaxTMI 
2021 (9) TMI 650
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....nd circumstances of the assessee's case in confirming the addition of '22,71,911/- made by Ld. AO u/s 68 of the Act in respect of credit balances outstanding as on 31.03.2011 in respect two creditors. 2. That the Ld. CIT (A) have grossly erred on facts and circumstances of the assessee's case and in confirming the disallowance made by the Ld. AO on account of exchange rate fluctuation loss amounting to '53,181/- without affording any opportunity to the assessee for explaining their nature and justification for their allowability. 3. That the Ld. AO and consequently the Ld. CIT(A) have grossly erred on facts and circumstances of the assessee's case in charging interest u/s. 234A and 234B of the Act." 3. The asses....
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....nding as on 31/3/2011 in respect of two creditors. The Ld. AR submitted that during the assessment proceedings, the Assessing Officer asked the assessee to file confirmation from all the creditors exceeding outstanding balance of Rs. 5 lacs each as on 31st March, 2011. There were only six such creditors having balance of Rs. 2,21,51,259/- in this category. Out of this, assessee obtain confirmation and filed the said confirmations obtain from four such creditors having balance of Rs. 1,98,79,348/-, which constituted almost 90% of the total outstanding creditors. However, the assessee could not arrange confirmations from two creditors, that are Durga Das Publications Pvt. Ltd. (Rs. 13,12,602/-) and Travel Click Incorporation (Rs. 9,59,309/-) ....
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....e documents from the Assessing Officer. The Assessing Officer claimed that these documents were not additional evidences and interested upon that only confirmations from these parties perhaps would satisfy additions u/s 68 was correctly made by the Assessing Officer. The Ld. AR submitted that the parties are genuine and regular and the identity and creditworthiness of these parties were placed before the Assessing Officer as well as before the CIT(A) and instead of looking to the additional evidences of the two creditors, the Assessing Officer has not taken cognizance filed by the assessee in support of his submission. The Ld. AR relied upon the decision of the of the Hon'ble Supreme Court in case of Anees Ahmed and Sons Vs. CIT 297 ITR 441....
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..../- in case of Travel Click International have been returned back by the assessee, being the amounts not claimed by the said parties. The Ld. AR produced he ledgers and balances wherein return of account for Financial Year 2013-14 was mentioned. The Ld. AR pointed out that the said write back has been offered to tax by the assessee in Financial Assessment Year 2013-14. The Ld. AR submitted that the said write backs have been credited under the head other income in the profit and loss account of the assessee during the year under consideration. Furthermore, the income tax returns of the assessee have been shows that such credit has been in-fact offered for tax during the year under consideration. The above position translates to the facts tha....
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...., therefore, was not returned under tax audit report & financials. In the return of income, there was no adjustment indicated on account of provisions of Section 43A of the Act which is rightly reported by the tax auditor in Schedule describing depreciation in Form 3CA-CD. The said exchange loss has been recognized on the transaction pertaining to reservation fees, tour and travel/marketing expenses, participation fees and adverse fees which are clearly revenue in nature and the statutory auditor has also reported the above expenditure in foreign currency in notes to financial during the year under consideration in pursuant to Para 4D of Part 2 of Schedule 6 of Companies Act, 1956 and none of the expenditure is in the nature of capital tran....