9911796707
TMI Blog2013 (3) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... led Stay Application Nos. 164 and 1675/Hyd/2011 seeking stay of payments of outstanding disputed demands of tax. 3. First let us deal with the common ground in these appeals which is with regard to confirming the orders of the CIT (A) making addition at Rs.1,42,91,279/- and Rs.3,55,25,194/- in the cases of M/s Narne Constructions Pvt. Limited and M/s. Narne Estate Pvt. Limited though not as unexplained cash credits but as income of the assesses. 4. Brief facts of this issue are that the assesses herein engaged in the business of civil construction. During the assessment year, it was noticed that these assessees shown the above mentioned amounts in the books of accounts as the advances received against the sales. Since the required informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration as it is only received as advance and the system of accounting of the assessees was accepted by the department in earlier year as well as in the subsequent year and disturbing the method of accounting deployed by the assessee shall be avoided. On the other hand, the learned departmental representative submitted that there is no reason to the accounting corresponding expenses relating to those receipts of advances and postponement or deferment of accounting of sales that would definitely disturb the real profit position of the assessees. The Departmental Representative relied on the orders of the lower authorities. 6. We have considered the submissions of the rival parties and perused the material available on record. The primary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1463/Hyd/2011 is with regard to the addition of Rs.4 lakhs as unexplained cash credit in spite of there is confirmation left and the assessee discharging the onus cast on it. The assessee was in receipt of Rs.23.5 lakhs from five parties and out of them, three parties were assessed to tax and their PAN Numbers were furnished. However, in respect of two creditors viz., A. Medha and A. Sreeka, neither the proof of the sources nor their income-tax particulars were furnished by the assessee. In the absence of such information, the assessing officer treated the loans given by A. Medha and A. Sreeka at Rs. 3 lakh and Rs.1 lakh respectively as unexplained credits under section 68 of the IT Act. It was submitted that A. Medha and A. Sreeka are min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.2,21,96,209. The assessee has not furnished copies of bills, vouchers and proof for incurring such expenses on development work. The assessing officer disallowed 25% of such expenses as unexplained income and added the same to the income of the assessee. On appeal, the CIT (A) confirmed the disallowance at 15% of these expenses. 10. We have heard both the parties on this issue. The contention of the assessee is that this item has not been debited to Profit & Loss A/c and this has been shown in the balance-sheet and it cannot be considered for allowance or disallowances. We find force in the contention of the assessee's counsel that unless the assessee claims this item as expenditure, the assessing officer cannot allow or disallow the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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