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2013 (5) TMI 253

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..... ined cash credit - advance received from sundry debtors unexplained - CIT(A) deleted addition - Held that:- CIT(A) held that the AO ought not to have taken shelter of the cited case laws that misinterpretation of the statements cannot be a ground for invoking the provision of section 145(3). It was the case of postponing the sales against such advance in the impugned assessment year, in so far as, the AO has not pointed out any specific defect in receiving the advance from sundry debtors to be applied as future as sales. CIT(A) thereafter held the same as onus being discharged by the assessee as, creditworthiness of the sundry creditors or advance received from sundry debtors cannot be questioned under the provision of section 68 as the onu .....

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..... the Revenue dismissed. - ITA No.180/Kol/2012 - - - Dated:- 8-4-2013 - Sri K. K. Gupta, AM And Sri Mahavir Singh, JM,JJ. For the Appellant Shri Dilip Kr. Rakshit, Sr.DR For the Respondent Shri Subash Agarwal ORDER Per Shri K. K. Gupta, AM This is an appeal by the Revenue against the order of the ld. CIT(A)-Asansol Kolkata dated 30.11.2011 for Assessment Year 2008-09. 2. In this appeal the Revenue has raised the following grounds :- "1. That the ld. CIT(A), Asansol has erred in law and on facts in deleting addition of Rs.31,42,061/-made by the AO on account of lack of creditworthiness of the creditors. 2. That the ld. CIT(A), Asansol has erred in law and on facts in deleting addition of Rs.11,65,679/- made by the AO .....

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..... received - The assessee received advance of Rs.11,65,679/- from Shri Ram Rathi Steels Pvt. Ltd. one of his sundry debtors. Once again, the A.O. added the said sum by wrongly treating the same as unexplained cash credit. (C) Carriage Inward - The assessee claimed carriage inward of Rs.7,78,745/- and Rs.2,15.504/- for the A.Y. 2008-2009 and A.Y.2007-2008 respectively. In the relevant year, purchase increased by 108.62% in comparison to the A.Y. 2007-2008. The A.O. restricted the carriage inward to Rs.4,49,584/- commensurate with the rise in purchases and disallowed the balance amount of Rs.3,29,160/-. 4. Aggrieved the assessee went in appeal before the First Appellate Authority, who deleted these additions on the basis of the facts and c .....

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..... receipt from the buyers of the goods. The ld. CIT(A) on this issue of advance receipt from sundry creditors held that the AO ought not to have taken shelter of the cited case laws by him, in so far as, misinterpretation of the statements cannot be a ground for invoking the provision of section 145(3). It was the case of postponing the sales against such advance in the impugned assessment year, in so far as, the AO has not pointed out any specific defect in receiving the advance from sundry debtors to be applied as future as sales. The ld. CIT(A) thereafter held the same as onus being discharged by the assessee, in so far as, creditworthiness of the sundry creditors or advance received from sundry debtors cannot be questioned under the provi .....

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..... ods as the sales had been incorporated and the purchases included the installation expenses, in so far as, the assessee's not rendering the job work was got done from the seller of the goods only. In so far as it was not the case of the AO to find income for the expenditure. The amounts have been incurred by the assessee on the basis of the bills raised by the party as given in page 94 of the paper book when the total purchases were sold and installation charges were subjected to tax deduction at source when the work was got done by the assessee from the very seller of the goods of the assessee, in other words a portion of income being the trader of the goods was declared by the assessee when the claim of expenses as installation cannot be .....

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