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TMI Blog2014 (1) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the invoice to be sufficient evidence for proving the installation and allowing the claim. No new or fresh evidence in this regard was brought by the assessee before CIT(Appeals). Addition of sundry debtors balance - Held that:- No doubt the explanation given by the assessee before the CIT(Appeals) was different from what was given by it before the Assessing Officer. However, there was no fresh evidence filed by the assessee. Assessee had only relied on the audited final accounts statement and schedules thereto, all of which were part of the return of income filed by it. It had shown therefrom that the difference between the debtors’ account and the sales value credited in the Profit & Loss Account was only due to the freight el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditioners costing as ₹ 2,94,000/- and sundry debtors balance of ₹ 3,82,46,693/-. As per the Assessing Officer nothing was forthcoming from the assessee to show that the Split AC was installed during the relevant previous year. He therefore disallowed claim of depreciation amounting to ₹ 36,750/- on this. 3. Based on the details of sundry debtors filed by the assessee, Assessing Officer reached a conclusion that sales to four parties, credited in the Profit Loss Account totalled to ₹ 14,42,36,169/- whereas corresponding debtors accounts reflected sales of ₹ 14,90,11,146/-. Assessee s explanation that difference was on account of cost of samples was not accepted by the Assessing Officer. An addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowed. Vis-a-vis the difference in sundry debtors ld. CIT(Appeals) noted that assessee had filed audited accounts statements along with it s return which clearly brought out the fact that the difference arose only for a reason that sales were expressed in FOB value whereas customers were charged on CIF value. Recovery of freight from the customers went to reduce the total freight charges. Assessee had only claimed net freight charges in it s Profit Loss Account. Taking this view of the matter, he deleted the addition made for the difference in debtors account as well. 8. Now before us ld. D.R. submitted that ld. CIT(Appeals) had admitted additional evidence in the form of invoice for Split AC and explanations for the difference in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les value credited in the Profit Loss Account was only due to the freight element and recovery of the freight amount from the debtors were netted against the freight cost. Only the net freight was charged to the Profit Loss Account. In our opinion, explanation given by the assessee based on records already filed before the Assessing Officer cannot be considered as fresh evidence. Procedure to be followed in an appeal before CIT(Appeals) is set out in Section 250(1) of the Act and it says that CIT(Appeals) shall give notice not only to the assessee but also to the Assessing Officer and both were having a right to be heard. There is no case for the Revenue that the Assessing Officer was not given such a notice. In fact, hearing of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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