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TMI Blog2023 (6) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of the appeal by giving relief to the assessee. Addition towards difference in the total credit entry in the bank account and the gross sales as reported by the assessee in the P L Account which is on account of VAT/ GST collection - HELD THAT:- From the perusal of the order of Ld. CIT(A), we note that assessee has elaborately explained his case by explaining the methodology of accounting adopted in respect of sales and VAT in his books of account. CIT(A) has given his finding after considering the submissions made by the assessee and allowed the relief. Cognizance of section 145 r.w.s.145A(ii) and relevant ICDS IV for revenue recognition has not been taken into consideration which have become applicable from AY 2017 -18, the year under consideration before us i.e. AY 2017-18. Therefore, in the interest of justice and fair play, finding force in the submissions made by Sr. DR, we remit the matter back to the file of Ld. CIT(A) to adjudicate afresh on this issue by taking into consideration the provisions of section 145 read with section 145A(ii) and relevant ICDS IV. Appeal of the revenue is allowed for statistical purposes. - SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI GIRISH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his proprietary business in the name and style of M/s. Aashu Enterprises which was involved in the distributorship and wholesale trade of branded tobacco items like Rajnigandha, Tulsi, Marlboro Cigarette and Raga Pan Masala. Assessee filed his return of income on 30.03.2018, reporting a total income of Rs.60,63,300/-. A survey was conducted u/s. 133A of the Act at the business premises of the assessee on 28. 11. 2016. During the course of survey, certain discrepancies were noted in respect of cash in hand and the stock of goods for which details and explanations were called for by the Ld. AO. Assessee made certain submissions in response to the queries raised by the Ld. AO by filing the written submissions and other letters. Ld. AO also required the assessee to produce books of account for verification of the submissions made by the assessee. In this respect, Ld. AO noted that assessee had submitted only a typed copy of closing stock statement as on that date. For want of certain documents for substantiating the claims made by the assessee, Ld. AO proceeded to complete the assessment by making additions and assessed the total income at Rs. 15, 15,47, 230/-. 3.1. Aggrieved, assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have the heard rival contentions and carefully perused the material available on record. From the perusal of the order of Ld. CIT(A), it is noted that he has placed reliance on confirmation letters and income-tax returns of the tenants in respect of which it was claimed that their stock was also lying at the business premises where the survey was conducted in order to explain the discrepancy found in the stock in the course of survey. Similarly, in respect of cash found during the survey, the cash book was furnished before the ld. CIT(A). Also, the documentary evidence for the premium paid to claim deduction u/s. 80 C was presented before the Ld. CIT(A). In the interest of justice and fair play, Ld. CIT(A) ought to have given a reasonable opportunity of being heard to the ld. AO so as to examine and verify these documents and records and obtain a remand report before disposing of the appeal by giving relief to the assessee. Considering the present set of facts, we find it proper to remit the matter contained in ground no. 1 to the file of Ld. CIT(A) to adjudicate on the issue afresh after giving reasonable opportunity of being heard to the Ld. AO by obtaining a remand report in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this respect submitted that effective from AY 2017-18, income chargeable under the head Profit Gains of business or profession has to be computed by filing the Income Computation and Disclosure Standard (ICDS) with either cash or mercantile system accounting regularly employed by the assessee. It was further stated that Sec. 145A prescribes that for the purpose of determining income chargeable under the head Profits and Gains for business or profession , u/s. 145A(ii) the valuation of purchase and sale of goods or services and of inventory is required to be adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee, to bring the goods or services to the place of its location and condition as on the date of valuation. She referred to ICDS-IV relating to Revenue Recognition wherein this ICDS deals with basis for recognition of revenue, inter alia, for sale of goods which states that 3. In a transaction involving the sale of goods, the revenue shall be recognised when the seller of goods has transferred to the buyer the property in the goods for a price or all significant risks and rewards of ownership have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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