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TMI Blog2019 (5) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue. Addition on account of showing low bilty charges - assessee failed to produce any books of account - HELD THAT:- Assessee had already declared bilty charges which is 0.98% of the total receipt. As brought to our notice that in the previous assessment year 2013-14 when the freight receipt was ₹ 8,.10,32,496/- bilty charges was ₹ 8,65,025/- which was 1.06% whereas in this assessment year 2014-15 freight receipt was ₹ 11,70,63,030/- bilty charges was reflected by the assessee at ₹ 11,55,100/- which is 0.99%. The assessee has produced all the books of account etc. without finding any defect or irregularities therein, the AO ought not to have gone for estimation of income, without rejecting the books as per the procedure prescribed u/s. 145(3) read with sec. 144 and, therefore, the action of the AO was arbitrary in nature and so vitiated, therefore, the action of the CIT(A) who after due verification made by him does not require any interference from our part and, therefore, we confirm the action of CIT(A) and dismiss this ground of appeal of revenue. - ITA No.336/Jodh/2018 - - - Dated:- 10-5-2019 - Shri N.K.Saini, Vice President And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an at any given point of time. It was also brought to the notice of the authorities below that the outstanding amount/balances were in the nature of amount due against truck owners who had transported the goods for the assessee; and when the assessee receives the payments from principal on behalf of such transferee it is paid to the truck owners. It was brought to our notice that the assessee is only a conduit for disbursing the freight to individual truck owners and that the truck owners got the entire freight received from the respective parties after deducting booking charges of each booking which is the assessee s income from the transportation. Therefore, according to the assessee, the temporary balance in the account of the above parties for a nominal period cannot be termed as cash credit. It was also brought to our notice that the entire details of the trade creditors (freight payable as on 31.03.2014) and list showing names of the truck owners, truck number, G.I.R. No., PAN of the Truck owners, amount of freight payable and date on which same was paid by the assessee were placed on record of the AO JCIT during assessment proceeding itself. However, the AO has turned a bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, a liability for purchase which has been credited in the account of the supplier cannot be added under section 68 of the Act, more so when the purchase has been accepted as genuine and a deduction therefor has been allowed. In all other cases including the case of a credit representing the sale proceeds of an asset, the provisions of section 68 are applicable and it is for the assessee to prove satisfactorily the nature and source of the monies .. 5. From a bare reading of the aforesaid dictum of law as made by the Special bench, we note that there is a difference between credit representing a liability payable by the assessee and a credit representing monies received from another person. It is because of this distinction a liability which arises as a consequence of any purchase resulting in a corresponding credit to the account of the supplier cannot be added u/s. 68 of the Act, more so, when the purchase has been accepted as genuine. In other cases involving actual receipt of money, the provisions of sec. 68 are applicable and then the onus is on the assessee to prove satisfactorily the nature and source of the monies. In the present case we note that the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of section 68 of the Act was squarely attracted in the present case and the assessing authority has rightly added the two amounts at the hands of the respondent-assessee. According to him section 68 of the Act also covers up the case of purchases made on credit. 8. The submission is misconceived. The Tribunal has recorded a categorical finding of fact based on appreciation of materials and evidence on record that the Assessing Officer had accepted the purchases, sales as also the trading result disclosed by the respondent-assessee. It had recorded a finding that the aforesaid two accounts represented the purchases made by the assessee on credit and, therefore, the provisions of section 68 of the Act could not be attracted in the present case. We fully agree with the view taken by the Tribunal on this issue, inasmuch as, on the bo.sis of the findings recorded by it that these two amounts represented purchases made by the respondentassessee on credit and the purchases and sales having been accepted by the department, the question of addition of the aforesaid two amounts under section 68 of the Act did not arise inasmuch as the provisions of section 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ten submissions (APB 37 to 160, relevant portion at para-5, on page 43) dated 10.05.2014 filed before the CIT(A). The ld. CIT(A) has, however, not addressed this grievant at all and merely upheld the addition made under section 68 of the Act On behalf of the assessee, a comparative chart of net profit rate of the assessee for the assessment years 2005-06 to 2011-2012 has been filed before us. In the earlier years also, no such addition was made. For the assessment Year 2007-08, under scrutiny assessment, the assessment was made at 8%. The position remained much the same for the assessment year 2008-09. The year under consideration is assessment year 2009-10. The material supplied to the assessee by the concerned department is part of the assessee's turnover. The net profit rate of the assessee for the year under consideration u)as in line with the preceding assessment year. Further, the trade creditors in the earlier years, i.e. assessment years 2007-08 and 2008-09 stands accepted in scrutiny assessments. Thus, the genuineness of the expenses under consideration cannot be doubted. Moreover, the genuineness of the expenditure was not at all called into question. It was only that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l submissions and gone through the facts and circumstances of the case. We note that the AO had asked the Ld. AR of the assessee whether the bilty charges was inclusive in the receipt from the company or whether it is collected separately from the truck owner and since the Ld. AR of the assessee failed to give satisfactory answer, he had proceeded to make the addition as aforesaid. We note that the Ld. CIT(A) has called for the assessment records and the Ld. CIT(A) has made a finding of fact that bility charges were inclusive in the receipt from the company, which finding of fact has not been challenged by the Revenue, so, this finding of fact by Ld. CIT(A) crystalises. Moreover, we note that the assessee had produced the books of account during the assessment proceedings. However, the AO for reasons best known to him has stated that the assessee failed to produce any books of account. It was submitted before us that during the assessment proceeding the books of account were also produced before the JCIT, Range-1, Jodhpur in the proceedings u/s. 144A of the Act and it was also brought to our notice that the JCIT, Range-1 after due verification from the documentary evidence, materia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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