SRI LAKSHMI CONSTRUCTIONS,NELLORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, GUNTUR

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ITA 285/VIZ/2023Status: DisposedITAT Visakhapatnam24 July 2024AY 2020-21Bench: SHRI DUVVURU RL REDDY, HON’BLE (Judicial Member), SHRI S BALAKRISHNAN, HON’BLE (Accountant Member)7 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. The matter was remitted back to the Assessing Officer to verify stock details based on updated audited books of accounts, as the initial assessment was based on un-updated books.

What were the facts?

During a survey operation, incriminating material including cash loan vouchers and personal diaries were impounded. The assessee was unable to explain loans amounting to Rs. 3,49,73,000. The Assessing Officer made additions for unexplained cash credits and stock difference.

What were the issues?

Whether the addition on account of stock difference is justified when the books of accounts were not updated at the time of survey. Whether the matter should be remanded for fresh verification of stock based on updated financials.

Which sections of the Income-tax Act were involved?

Section 133A,Section 68,Section 115BBE,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Respondent: Dr. Aparna Villuri, Sr. AR
Hearing: 11/06/2024

Per contra, the Ld. Departmental Representative [“Ld. DR”] heavily relied upon the orders of the Ld. Revenue Authorities and argued in support of the same.

6.

We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. Admittedly, we find from the page No.94 of the paper book submitted by the assessee, the Profit & Loss Account remains unupdated as on the date of survey ie., 19/02/2020. Considering the submissions made by the Ld. AR, following the principles of natural justice, we find it deem fit to remit the matter back to the file of the Ld. AO to verify the stock details based on the updated audited books of accounts and the return 7 of income filed by the assessee for the AY 2020-21. We also direct the assessee to produce the records regarding the stock as well as sales & purchases before the Ld. AO for verification. It is ordered accordingly.

7.

In the result, appeal filed by the assessee is allowed for statistical purposes as indicated herein above.

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