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TMI Blog2016 (8) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeds are accounted as income by the assessee and this method of accounting has been consistently followed by the assessee and has also been accepted by the Revenue in the scrutiny proceedings. As during the year under consideration assessee had received trade deposits of ₹ 35.5 lacs and has repaid ₹ 26 lacs out of it and in effect the net trade received by the assessee during the year was only to the tune of ₹ 9.5 lacs. - Nothing to go against CIT's order - Decided against revenue - I.T.A. No.2554/Ahd/2013 - - - Dated:- 9-8-2016 - SHRI RAJPAL YADAV, JUDICIAL MEMBER and SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER Appellant by : Shri James Kurian, Sr.DR Respondent : by : Ms.Urvashi Sodhan, AR O R D E R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the Assessing Officer to the extent mentioned above since the assessee has failed to disclose his true income/book profit. 3. Before us, both the parties have submitted that the solitary issue is with respect to disallowance of addition of ₹ 35.50 lacs. 3.1. During the course of assessment proceedings and on perusing the Balance-Sheet, the AO noticed that assessee had shown an amount of ₹ 54,21,107/- as trade deposits, the details of which are listed at page 2 of the assessment order. AO was of the view that trade deposits received from various dealers should have been considered as income and on delivery of vehicles the sales was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ARDs and SSPs for display, test drive etc. at different locations, trade deposits were received from them by way of security; confirmation letters in this regard from ARDs and SSPs were furnished to the AO during the course of assessment proceedings; when the sales actually take place, they are booked by the appellant and corresponding trade deposits were returned to ARDs and SSPs; the opening credit balance in the names of six ARDs and SSPs stood at ₹ 44,71,107/-, during the year deposits of ₹ 35.5 lakhs was received, an amount of ₹ 26 lakhs was repaid leaving the balance of ₹ 54,21,107/- in the books of accounts; AO's action in assessing the security trade deposits received during the year of ₹ 35.5 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received during the year were only to the tune of ₹ 9.5 lakhs. Keeping in view the facts of the case, impugned addition is deleted. This ground of appeal is allowed. 4. Aggrieved by the order of ld.CIT(A), Revenue is now in appeal before us. 4.1. Before us, ld.Sr.DR supported the order of AO. Ld.AR, on the other hand, reiterated the submissions made before AO and ld.CIT(A) and supported the order of ld.CIT(A). 5. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. The issue in the present case is with respect to the considering the trade deposits received by the assessee as the income of assessee. We find that the ld.CIT(A) while deleting the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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