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TMI Blog2020 (7) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Since the appeals are taken up simultaneously, the Ld.AR did not press the stay applications, hence, the stay applications filed by the assessee are dismissed as not pressed. I.T.A.48/Viz/2020, A.Y.2007-08& I.T.A.49/Viz/2020, A.Y. 2008-09 2. These appeals are filed by the assessee against the orders of the Commissioner of Income Tax (Appeals) [CIT(A)]-1, Visakhapatnam vide ITA Nos. 10463& 10469/2016-17/CIT(A)-1/VSP/2019-20 dated19.12.2019. Since the facts are identical, these appeals are clubbed, heard together and disposed of in a common order for the sake of convenience as under: 3. All the grounds in both the appeals are related to the addition made by the Assessing Officer (AO) representing the advances recovered by the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee furnished the cash flow statements before the AO and taken the realization of debtors of Rs. 10,50,000/- as sources of funds for the A.Y.2007-08 and Rs. 74,50,000/- for the A.Y.2008-09. The Ld.Pr.CIT during the 263 proceedings has called for the details of the debtors, which the assessee could not furnish, due to the fact that the entire business activity of the assessee was looked after by her husband, who had expired on 29.06.2010 and she had no idea with regard to the details of the debtors. The same explanation was furnished before the AO as well as the Ld.Pr.CIT. The assessee further submitted that the details were maintained by her husband as well as the auditor, but the auditor has withdrawn the case and did not co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the assessment u/s 143(3) r.w.s. 147 of the Act. The AO did not doubt the genuineness of realization of debtors in the assessment proceedings. However, the Ld.Pr.CIT, doubted the realization of debtors and directed the AO to redo the assessment de novo. In the instant case, the claim of the assessee was that the sources of funds was realization of debtors. The Ld.AR has explained that the 263 proceedings were taken up in 2016 vide notice dated 01.03.2016 i.e. after more than seven years from the end of the relevant assessment year and by that time all the time limits were expired except for 263 proceedings. It was also submitted by the Ld.AR that the assessee could not furnish the required details due to sad demise of her husband who loo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of debtors. The assessee has furnished the statement affairs on 31.03.2016 which was also placed before the lower authorities. As per the statement of affairs as on 31.03.2016 outstanding debtors was was Rs. 69,75,800/- which was the opening balance for the year under consideration. Whereas the same balance was reduced to Rs. 59,25,000/- by the end of the year which shows that there was reduction of debtors to the extent of Rs. 10,50,000/- which represents the realization of debtors. Therefore, the contention of the assessee that the realization of debtors was from the outstanding balance appears to be correct. The AO has neither doubted the opening balances of debtors and the closing balances of debtors and the reduction of outstanding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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