9911796707
TMI Blog2020 (4) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee submitted the bill, ledger and relevant bank statement for the payment made. We note that there is merit in the submission of the ld. Counsel as the assessee produced bills, ledger copy, bank statement (transaction done through banking channel) to prove the bona fide of the transaction, therefore, we delete addition. Addition of share application money u/s 68 - HELD THAT:- The company duly filed Form No.2 with the Registrars of Companies for the aforesaid shares issued. The quantity and value in respect of share application money has been properly accounted for in the books of accounts of the company and explained properly to the Assessing Officer. Further, the Ld AO added the share application money as unexplained cash credit as per section 68 of the Income Tax Act 1961 whereas the assessee is a company (not being a company in which the public are substantially interested), and shares were issued to the existing Directors/shareholders therefore identity of the share subscribers are not in doubt. The Assessing Officer made addition on the ground that quantity and value in respect of share application money is not matching. We note that assessee filed reconciliation and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has not furnished any supporting evidence. However, the assessee furnished all supporting evidence i.e. ledger, bank statement, ITR Acknowledgement, Balance Sheet of all the share applicant, but without considering the same the ld. CIT(A) confirm the addition of share application money which is not justified. 3. That on the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in confirming partially addition of ₹ 12,22,515/- on account of undervaluation of closing stock. 4. That the appellant craves leave to add / alter and / or delete any of the grounds of appeal on or before the date of hearing. 3. Ground no. 1 raised by the assessee relates to disallowance of transportation charges amounting to ₹ 8,82,059/-. 4. Brief facts qua the issue are that during the scrutiny proceedings, the Assessing Officer made an addition of ₹ 8,82,059/- on account of transportation charges as claimed by the assessee. The Assessing Officer had issued notices u/s 133(6) to two transporters which were returned back unserved. As narrated in the assessment order, the Assessing Officer was of the view that the identity of the parties as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed bill and invoices from Shakti Transport and thereafter made the payment through account payee cheque. The ld. Counsel submitted that during the assessment stage the party called M/s Shakti Transport did not cooperate with the assessee,therefore, the assessee could not produce the said party before the ld. Assessing Officer, but assessee submitted the bill, ledger and relevant bank statement for the payment made. We note that there is merit in the submission of the ld. Counsel as the assessee produced bills, ledger copy, bank statement( transaction done through banking channel) to prove the bona fide of the transaction, therefore, we delete addition of ₹ 8,82,059/-. 9. Ground no. 2 raised by the assessee relates to the addition of share application money of ₹ 15,37,400/-. 10. Brief facts qua the issue are that the assessee company received share application money of ₹ 15,37,400/-. Assessing Officer was of the view that assessee failed to explain the identity of the share subscribers therefore he made addition u/s 68 of the Act to the tune of ₹ 15,37,400/-. 11. On appeal, the ld. CIT(A) confirmed the addition made by the Assessing Officer observing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... panies for the aforesaid shares issued. The quantity and value in respect of share application money has been properly accounted for in the books of accounts of the company and explained properly to the Assessing Officer. Further, the Ld AO added the share application money as unexplained cash credit as per section 68 of the Income Tax Act 1961 whereas the assessee is a company (not being a company in which the public are substantially interested), and shares were issued to the existing Directors/shareholders therefore identity of the share subscribers are not in doubt. The Assessing Officer made addition on the ground that quantity and value in respect of share application money is not matching. We note that assessee filed reconciliation and submission as noted above and there is no mismatching. Hence, we delete the addition of ₹ 15,37,400/-. 15. Ground no. 3 raised by the assessee relates to partially addition of ₹ 12,22,515/- on account of undervaluation of closing stock. 16. Brief facts qua the issue are that this ground is directed against the action of the AO, making addition of ₹ 18,08,689/- on account of undervaluation of stock. The extract of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant. Thus, the Assessing Officer is directed to consider the value of closing stock at ₹ 12,22,515/- (1630.03MT x ₹ 750MT) instead of ₹ 18,08,689/- adopted by him. Thus the appellant gets relief of ₹ 5,86,174/- (₹ 18,08,689/- minus ₹ 12,22,515/-). This ground is decided accordingly. 18. Aggrieved, the assessee is in appeal before us, 19. The ld. Counsel for the assessee has relied on the submission made before the lower authorities. On the other hand, the ld. DR has primarily reiterated the stand taken by the Assessing Officer which we have already noted in our earlier para and the same is not being repeated for the sake of brevity. 20. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials available on record. The ld. Counsel submitted before us that as per Accounting Standard-2, the cost of inventories should comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
