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TMI Blog2017 (6) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... we have already seen this has been taken into account by reduction in the liability side of the Balance Sheet and therefore the effect is one and the same. As we have already stated the addition can be made only when the investment is not recorded in the books of accounts. Since the investment is found to be recorded in the books of accounts, I am of the view that there was no reason to interfere with the order of the CIT(A) and hold that the addition was rightly deleted by the CIT(A). - Decided in favour of assessee. - I.T.A No. 2369/Kol/2016 - - - Dated:- 12-4-2017 - Sri N. V. Vasudevan, JM For the Appellant : Shri Alok Nag, JCIT For the Respondent : Shri Soumitra Choudhury, Advocate ORDER Per N.V.Vasudevan, JM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odically against payments to be made by the Assessee after sale of lottery tickets by the Assessee. The Assessee would in turn sell lottery tickets to sub-stockist and would collect security deposits from the sub-stockist. The Assessee explained it paid ₹ 43,74,312 to Future Plus Enterprise Pvt. Ltd., as trade deposit from and out of 51,47,062, the Assessee had collected from its sub-stockists. The amount collected by the Assessee from its substockists as security deposit and other borrowings were totalled and the amount Assessee paid Future Plus Enterprise Pvt. Ltd was reduced and the net liability figure was shown by the Assessee in the Balance Sheet. The security deposit paid to Future Plus Enterprise Pvt.Ltd., was thus shown in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant pays trade advance to its creditor and other parties pay to the appellant . This safeguards the parties involved in this business. The appellant has submitted that The total amount of trade deposit received from my sundry debtors as on 31s1 March, 2012 is ₹ 51,47,062/--(Credit Balance). During the financial year 2011-12 you appellant has debited Advance From Parties Account by a debit balance of ₹ 43,74,312/- with future plus enterprise Pvt Ltd and has credited ₹ 51,47,063/- on account of Trade advance taken from Sub-stockists/Agents/ retailers. Further an advance taken from your appellant's husband Mr D. Saha ₹ 29,00,000 (Cr) /- which I have shown under Advance from party in the balance sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect. 8. I have given a very careful consideration to the rival submissions. The addition made by the AO is by invoking the provisions of Sec.69 or 69A of the Act. In both the aforesaid provisions, the requirement is that the investments or unexplained money, bullion, jewellery or other valuable article should not have been found recorded in the books of accounts of the Assessee. From the explanation given by the Assessee, which has not been shown to be incorrect by the Revenue, it is clear that the security deposit with M/S.Future Plus Enterprise Pvt.Ltd., is duly reflected in the books of accounts of the Assessee. In the grounds of appeal, the revenue has contended that the security deposit in question ought to have been shown in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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