DCIT, CIRCLE-1(1), BHUBANESWAR, BHUBANESWAR vs. M/S. KALINGA POWER CORPORATION PVT. LTD., BHUBANESWAR

ITA 250/CTK/2014Status: DisposedITAT Cuttack29 August 2017AY 2007-086 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the addition under Section 68 should be for credits in the current year, not opening balances from previous years. Since the advance was a carry-forward balance from prior to the relevant assessment year and accepted in earlier years, the addition was not sustainable.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 7,14,20,259/- on account of unexplained advance against share capital. The assessee claimed this advance was received prior to the relevant assessment year and was a carry-forward balance. The CIT(A) deleted the addition, finding the AO did not verify the factual position.

What were the issues?

Whether an advance against share capital, which is a carry-forward balance from earlier years, can be added as income in the current assessment year under Section 68 when it was not received in the current year.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI N.S.SAINI, AM & SHRI PAVAN KUMAR GADALE, JM

Hearing: 21/08/2017Pronounced: 29/08/2017

Per Shri Pavan Kumar Gadale, JM: The revenue has filed an appeal against the order of CIT(A), Berhampur (Camp: Bhubaneswar), dated 21.03.2014, passed in I.T.Appeal No.0226/10-11(BBS), u/s.143(3)/147 of the Income Tax Act, 1961 for the assessment year 2007-2008, wherein the revenue has raised the following grounds :-

1.

On the facts and in the circumstances of the case, the ld. CIT(A) was not justified in accepting the contention of the assessee and deleting the addition of Rs.7,14,20,259/- made by the AO on account

The order continues below.

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