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TMI Blog2022 (7) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as to whether the entire amount of billing has been credited to P L A/c as income and suffered taxation or not, and in case, if 5% of the amount of receivable is merely set-off against the creditor instead of showing receivable in the balance-sheet, will not have any repercussion on the income chargeable to tax, provided 100% billing amount (including 5% receivable of the last fortnight aggregating to Rs.22,02,368/- ) was offered to tax by the assessee in return of income and due taxes paid. If that be so where merely receivables are set off against creditors although total billed amount is credited to P L Account and offered for taxation and due taxes paid, we are of the considered view that no prejudice is caused to Revenue although it may be an accounting error. Thus, with these directions, we direct A.O. to verify whether such income to the tune of Rs.22,02,368/- was offered to taxation by assessee or not, or it is purely an accounting error of setoff of receivable against creditor. With these directions, we set aside the matter to the file of A.O. for carrying out limited verification as directed by us in this order. Appeal of assessee allowed for statistical purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have view that no addition/disallowance is required where there is no loss to revenue. 6. The assessee craves leave to add/alter any of grounds of appeal before or at the time of hearing. 3. The brief facts of the case are that the assessee is a partnership firm, engaged in business of supplying of dressed meat to Army base at Bangdobbi and fresh fruits to Army base at Bangalore. The case of the assessee was selected by Revenue for framing scrutiny assessment under the provisions of Section 143(3) read with Section 143(2) of the 1961 Act , which was completed by AO vide assessment order dated 28.03.2015 passed u/s 143(3) of the 1961 Act, determining total income of the assessee at Rs.95,57,260/-, as against returned income of Rs.87,920/-. Subsequently, the assessee filed revision petition u/s 264 of the 1961 Act with Learned CIT, Varanasi, who was pleased to pass an revisionary order dated 28.05.2015 under section 264 of the 1961 Act, setting aside assessment order dated 28.03.2015 passed by A.O. u/s 143(3) of the 1961 Act, and restored the issues back to the file of A.O. with a direction to make fresh assessment in accordance with directions given in the revisionary o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,02,368/- has not suffered taxation, which led to the confirmation of additions to the income of the assessee, to the tune of Rs.22,02,368/- by ld. CIT(A), vide appellate order dated 12.12.2017 passed by ld. CIT(A). 4. Aggrieved by aforesaid appellate order passed by Learned CIT(A), the assessee is in appeal before the tribunal. However, when this appeal was called for hearing before the Division Bench, none appeared on behalf of the assessee nor any adjournment application was filed on behalf of the assessee. This appeal is an old appeal having been filed on 2018, and on last several occasions when this appeal came up for hearing before the Division Bench, the assessee either sought adjournment, which was granted by the Division Bench, or the assessee did not appear before the Bench. We, therefore, proceeded to dispose of the appeal on merits, after hearing Learned Sr. D.R. 5. Learned Sr. D.R. opened arguments before the Bench and submitted that assessee has short declared income to the tune of Rs.22,02,368/- and hence, authorities below have rightly brought the same to tax. It was submitted by Learned Sr. D.R. that Learned CIT(A) has rightly upheld additions to the tune o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the tune of Rs.4,40,43,593/- has been credited in the P L A/c of the assessee for the year ending 31.03.2012, and the said sum is supported by bills given by Army, which is duly recorded/acknowledged by AO in its assessment order dated 24.12.2016 at para 5(i)/page 2. Now, it is the contention of the Revenue that for last fortnight i.e., for the period from 16.03.2012 to 31.03.2012, the assessee has credited 95% of billed amount to Profit and Loss A/c, and the remaining of 5% of the billed amount for the last fortnight of the financial year, aggregating to Rs.22,02,368/- was never offered for taxation by the assessee, which was rightly brought to tax by authorities below. The assessee on the other hand is claiming that it has offered entire income comprising of total billed amount to Army in its Profit and Loss account, and inadvertently the accountant committed a mistake by setting off receivable against the creditors as at year end, thus, the assessee is claiming that the amount of Rs. 22,02,368/- which was not received by year end and which ought to have been shown under receivable in the Balance Sheet was set off against the creditors erroneously by accountant, which has in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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