TaxTMI 
TaxTMI 
2022 (7) TMI 938
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....ch in turn has arisen from assessment order dated 24.12.2016 passed by learned Assessing Officer (hereinafter called "the AO") under section 143(3) read with Section 264 of the Income-tax Act, 1961 (hereinafter called "the Act"). 2. The grounds of appeal raised by assessee in Memorandum of Appeal filed with Income Tax Appellate Tribunal, Varanasi Circuit Bench, Varanasi (hereinafter called "the tribunal"), in ITA No. 40/Alld./2018 for ay: 2012- 13, reads as under : 1. " Because on the facts and in the circumstances of the case the Ld. Commissioner of Income Tax (Appeals) erred in law as well as on facts while confirming the addition of Rs.22,02,368/-. The appellant prays that the action of the Hon'ble CIT(A) may be treated a....
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.... Bangalore. The case of the assessee was selected by Revenue for framing scrutiny assessment under the provisions of Section 143(3) read with Section 143(2) of the 1961 Act , which was completed by AO vide assessment order dated 28.03.2015 passed u/s 143(3) of the 1961 Act, determining total income of the assessee at Rs.95,57,260/-, as against returned income of Rs.87,920/-. Subsequently, the assessee filed revision petition u/s 264 of the 1961 Act with Learned CIT, Varanasi, who was pleased to pass an revisionary order dated 28.05.2015 under section 264 of the 1961 Act, setting aside assessment order dated 28.03.2015 passed by A.O. u/s 143(3) of the 1961 Act, and restored the issues back to the file of A.O. with a direction to make fresh a....
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....ls raised were offered to taxation, while balance 5% should have been shown as the receivable as at year end, as the said amount is not credited in the bank account, which led to said income having not suffered taxation, which led AO to make additions to income of the assessee, to the tune of Rs.34,50,619/-, vide assessment order dated 24.12.2016 passed u/s 143(3) read with Section 264 of the 1961 Act. 3.1. Aggrieved by aforesaid assessment order passed by A.O, the assessee filed first appeal with Learned CIT(A), who was pleased to grant relief to the assessee to the tune of Rs.12,48,251/-, while additions to the tune of Rs.22,02,368/- stood confirmed by ld. CIT(A). It was observed by Learned CIT(A) that the assessee has claimed to have ....
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.... to the tune of Rs.12,48,251/-, and the Revenue is not in appeal before tribunal against aforesaid relief granted by ld. CIT(A). Thus, the solitary issue before tribunal is concerning the addition which is sustained by Learned CIT(A) to the tune of Rs.22,02,368/-. Learned Sr. D.R. took us to the orders passed by A.O. and Learned CIT(A), and submitted that assessee is supplying dressed meat to Army base at Bangdubi and fresh fruits to Army base at Bangalore. It was submitted that assessee has credited 95% of the billed amount of the last fortnight of the year to the income account, while rest 5% of the billed amount for last fortnight of the year was claimed to have been set off against the creditor which ought to have been shown as receivab....
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....ruits to Army base at Bangalore, on contract basis, and receipts to the tune of Rs.4,40,43,593/- has been credited in the P & L A/c of the assessee for the year ending 31.03.2012, and the said sum is supported by bills given by Army, which is duly recorded/acknowledged by AO in its assessment order dated 24.12.2016 at para 5(i)/page 2. Now, it is the contention of the Revenue that for last fortnight i.e., for the period from 16.03.2012 to 31.03.2012, the assessee has credited 95% of billed amount to Profit and Loss A/c, and the remaining of 5% of the billed amount for the last fortnight of the financial year, aggregating to Rs.22,02,368/- was never offered for taxation by the assessee, which was rightly brought to tax by authorities below. ....
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....t as at year end, but, prima facie it appears that the income has been fully brought to tax, which A.O. itself has admitted that the total receipt of Rs.4,40,43,593/- has been credited in the P & L A/c. Under these circumstances, we are of the considered view that the matter need to be restored back to the file of A.O. for limited verification as to whether the entire amount of billing has been credited to P & L A/c as income and suffered taxation or not, and in case, if 5% of the amount of receivable is merely set-off against the creditor instead of showing receivable in the balance-sheet, will not have any repercussion on the income chargeable to tax, provided 100% billing amount (including 5% receivable of the last fortnight aggregating ....