9911796707
TMI Blog2019 (10) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has furnished the complete details, the AO did not cause any enquiry to disprove the evidences produced by the assessee. As observed from the order of the CIT(A), the AO did not make any effort also during the remand stage. Once the assessee furnished the complete details of ledger accounts, customer details, vouchers and bills and completion certificates of the lifts, the burden of the assessee gets discharged and it is for the AO to make necessary enquiries and to prove the genuineness or otherwise. In the instant case, inspite of the fact that the books of accounts, bills, vouchers, details and the completion certificates are available, the AO did not find any defect in the details furnished by the assessee. Since the assessee has affected the sales and adjusted the sale advances in the subsequent years, there is no reason to suspect the genuineness of the trade creditors, hence, there is no case for making the addition. - Decided in favour of assessee Addition u/s 41(1) - HELD THAT:- AO did not make any addition u/s 41(1) of the Act. There is no dispute that the sum of 4,98,69,526/- was not related to the assessment year under consideration and the AO made the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A). The Ld.CIT(A) called for the remand report from the AO and the AO has submitted the remand report after duly considering the details submitted by the assessee in the remand proceedings. On being considered the written submissions of the assessee as well as the remand report of the AO, the Ld.CIT(A) dealt with the issue under the following two sub-heads. (a) Advances from Customers ₹ 4,98,69,526/- (b) Creditors for advances ₹ 1,80,60,116/- 4.1. Ld.CIT(A) found that the assessee has produced the copies of bank accounts, wherein, the advances stated to have been received from the parties were recorded in the earlier years. The assessee produced the books of accounts in support of it's contentions and out of the Closing Balance, advances of ₹ 4,98,69,526/-, opening balance was ₹ 5,09,47,386/- as on 01.04.2011 and the advances accepted during the previous year relevant to the assessment year was only ₹ 5,37,236/-. The working of closing balance was arrived at ₹ 4,98,69,526/ as follows: Opening balance of advances received as on 01.04.2011 5,09,47,386 Less : Sales recognized during the year 16,15,096 4,93,32,290 Add : Advances r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Out of the customer advances of ₹ 4,98,69,526/-, advances accepted by the assessee during the relevant assessment year under consideration was ₹ 5,37,236/-. The assessee failed to furnish the details called for by the AO. Though the assessee has furnished the account copies, the confirmations and other details called for by the AO were not furnished by the assessee and the Ld.AR also fairly conceded for the addition of ₹ 5,37,236/-, therefore, we set aside the order of the Ld.CIT(A) and confirm the addition of ₹ 5,37,236/- out of the total customer advances of ₹ 4,98,69,526/-. Accordingly, this ground of the appeal of the revenue is allowed. 11. Ground No.3 is related to the addition of ₹ 1,80,60,116/- representing creditors for advances. Before the Ld.CIT(A) the assessee submitted that the company has received the advances from the customers during the year under consideration and was grouped as creditors for advances and furnished the details party wise to the Ld.CIT(A). The ld.CIT(A) called for the remand report from the AO. It is explained by the assessee that there was an opening balance of ₹ 2,22,31839/- under the head creditors for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f trade credits and not cash credits. The trade advances were subsequently offered as income in relevant previous year of sale transaction of lifts. The appellant produced party-wise copies of completion of work certificates issued by appellant company in cases where the appellant completed the work of creation of lifts in the subsequent years along with respective ledger account copy. Returns of income filed by appellant in subsequent assessment years confirmed the contention of appellant. All the credits which are adjusted towards sales are trade credits and not cash creditors, in my view, there is no merit in confirming the same as these are not cash credits per se. 8.3.4. If at all Assessing Officer doubted the genuineness, identity and creditworthiness of the persons paying the advances, it is for Assessing Officer to cause necessary enquiry as the relevant details were made available to him by appellant. If on enquiry/ verification, Assessing Officer found any discrepancy, or not satisfied with the evidence, then only he can resort to invoking provisions of section 68 of the Act after giving due opportunity to appellant. From perusal of ITMR, it is evident that no such atte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tails of sales against the advances, regular sales and the total sales also and argued that all the above details were furnished to the AO at the time of remand proceedings and there was no failure on the part of the assessee in furnishing the information to the lower authorities. All the customer advances were trade advances and subsequently executed the works and adjusted the same against the sales admitting sales in the subsequent years in the returns of income. Therefore, argued that all the sale advances are genuine and not required to make any addition. Accordingly requested to uphold the order of the Ld.CIT(A). 14. We have heard both the parties and perused the material placed on record. There is no dispute that the amount of ₹ 1,80,60,116/- is trade advances accepted by the assessee through cheques and not by cash credits. The assessee has produced the bills and vouchers, respective ledger account copies before the AO. The trade advances were subsequently offered as income in the relevant previous year of sale transaction. The assessee also furnished party-wise copies of completion of work certificates issued by the customers, in cases where the assessee had complet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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