2013 (8) TMI 978

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..... our of Shri O.G.Krishnam Raju. At that point of time, the assessee transferred this advance to income account and finally offered the same for taxation as part of his income for the subsequent assessment year 2007-08. The Commissioner of Incometax( Appeals) has clearly stated that the assessee has included this income in the computation of taxable income of the assessee for the subsequent assessment year. He has also made it clear that the assessee is following mercantile system of accounting, on which the Revenue has no grievance. - Decided in favour of assessee - ITA No. 941/Mds/2013 - - - Dated:- 19-8-2013 - Dr. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER For thr Appellant : Shri N. Sankaran, IRS, CIT .....

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..... ter of income only in the next previous year and as such, the assessee has offered this advance as income for the subsequent assessment year 2007-08. The assessee has also produced confirmation letter from Shri O.G. Krishnam Raju to support the payment of advance to the assessee. But the Assessing Officer was of the view that the confirmation letter filed by Shri O.G. Krishnam Raju does not contain necessary details and therefore, the genuineness of the advance cannot be accepted. He accordingly treated the sum of ` 50 lakhs as unexplained cash credit and added the same to the income of the assessee under sec.68 of the Act. 3. In first appeal, the Commissioner of Income-tax(Appeals) examined the case. He held that the assessee is consist .....

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..... see transferred this advance to income account and finally offered the same for taxation as part of his income for the subsequent assessment year 2007-08. The Commissioner of Incometax( Appeals) has clearly stated that the assessee has included this income in the computation of taxable income of the assessee for the subsequent assessment year. He has also made it clear that the assessee is following mercantile system of accounting, on which the Revenue has no grievance. 7. In these circumstances, we find that the Assessing Officer was not justified in making the said addition of ` 50 lakhs and as such the order of the Commissioner of Income-tax(Appeals) in deleting the said addition is within law. Therefore, we confirm the order of the C .....

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