9911796707
TMI Blog2023 (2) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... n for purchase of Flat which has been conclusively proved by the assessee. Therefore, in our opinion, the addition made by the Ld. A.O. u/s 68 is not called for. Accordingly, the addition made by the A.O. which was sustained by the Ld.CIT(A) u/s 68 of the Act is hereby deleted, the Ground No. 1 of the assessee is allowed. Disallowing the deduction of dividend income - A.O. on perusal of the assessee s computation of income found that the assessee had decreased the dividend on unit of mutual fund/shares (offered for tax earlier) as cost of sales - A.O. was of the opinion that the tax exempt income even if not inventorised earlier would not had yielded any tax. Therefore, made addition - HELD THAT:- During the assessment proceedings the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef facts of the case are that, the assessee filed its return for the Assessment Year 2014-15 declaring income of Rs. 85,37,59,040/- under normal taxation and Rs.87,14,66,112/- as book profit under MAT. The case of the assessee was selected for scrutiny and assessment proceedings have been initiated. Assessment order came to be passed on 16/12/2016 by making addition of Rs. 1,11,81,536/- u/s 68 of the Act and a sum of Rs. 15,24,221/- made on wrong deduction of dividend income, made addition of un-reconciled amount of Rs. 4,22,500/-, further made addition of Rs. 1,850/- on account of late deposition of welfare fund. 4. As against the assessment order dated 16/12/2016 the assessee has preferred an appeal before the Ld.CIT(A). the Ld.CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omer can make the booking through its own funds as well as borrowed funds, thus produced financial statements, but did not produce the portion certificate and also submitted copies of the financial statement of the companies as extracted from ROC Website. The Ld. A.O. was not satisfied with the clarifications given by the assessee and made addition of Rs. 1,11,81,536/- as unexplained cash credit u/s 68 of the Act and added back to the income of the assessee. The said addition made by the A.O. has been confirmed by the Ld.CIT(A). 8. Before us, the Ld. AR has produced several documents to prove the genuineness of the transaction such as ledger of Array Export and Investment Pvt. Ltd. and MMB Steel India Pvt. Ltd. which reflects that the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. When the assessee was confronted by the A.O., the assessee had made a reply stating that the assessee has earned divided income in previous year and credited the same into inventory and offered for tax in respective years although the dividend income was exempt. The said amount has been deducted in the computation in the ratio of cost of goods sold . The Ld. A.O. was of the opinion that the tax exempt income even if not inventorised earlier would not had yielded any tax. Therefore, made addition of Rs. 15,24,221/-. 10. The Ld. CIT (A) has dealt with the above issued in detail during the appeal proceedings and rejected the claim of the assessee in following manners: 7.2 During the course of appellate proceedings, Ld. AR has state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant company. Accordingly, the addition of Rs. 15,24,221/- to the income of the appellant company is upheld. Ground No. 2 is decided against the appellant. 11. During the assessment proceedings the Ld. A.O. found that the assessee company had decreased the dividend on unit of mutual funds/shares (offered for tax earlier) as cost of sale. The assessee was also confronted by the A.O. that the benefit of the amount which is taxed exempt cannot be taken again. In this regard, the A.O. has observed that tax exempt income even if not inventorised earlier would not have yielded any tax. Therefore, made the addition which was sustained by the Ld. CIT(A). Considering the facts of the case, we do not find any error or infirmity in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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