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Income Tax Appellate Tribunal, CUTTACK
Before: SHRI N.S SAINI
This is an appeal filed by the assessee against the order of CIT(A)-1,
Bhubaneswar dated 4.8.2014, for the assessment year 2010-2011.
The sole issue involved in this appeal is that the ld CIT(A) erred in
confirming the addition of Rs.38,21,514/- made by the Assessing Officer
for cash advance received by the assessee.
I have heard the rival submissions and perused the orders of lower
authorities and materials available on record. The brief facts of the case are
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that the Assessing Officer found that the assessee has shown advance
received from 6 parties as under:
1) Debi Prasad Mohapatry : Rs.5,10,000/-
2) Smruti Behera, : Rs.5,12,700/-
3) Chanmayee Rajguru, : Rs.6,20,000/-
4) Fakir Charan Sahoo ; Rs.5,25,000/-
5) Debendu Pattnaik : Rs.5,40,937/-
6) Aboni Kumar Kanungo : Rs.5,75,000
Total: Rs.32,83,736/-
The Assessing Officer observed that the letters issued to above
persons were returned by the postal authorities unserved and that the
Inspector of the Department also reported that no such persons are
available at the addresses. He observed that the assessee expressed his
inability to reach the above persons and bring them before the Assessing
officer for confirmation of the advances. Further, the Assessing Officer
observed that the assessee had shown receipt of advance of
Rsw.5,37,877/- in cash from Sparsh Hospital & Critical Care (P) Ltd., who
has denied of having given such advance to the assessee. Therefore, the
Assessing Officer made addition of Rs.38,21,514/- to the income of the
assessee.
On appeal, the CIT(A) observed that as per ledger account, the
opening balance and advance received were as under:
3 ITA No. 409/CT K/ 2014 Asse ssment Year :20 10- 201 1
He observed that during the impugned assessment year, the
assessee has shown 30,25,000/- as advance from individuals and
Rs.5,37,877/- from Sparsh Hospital & Critical Care (P) Ltd., aggregating to
Rs.35,62,877/- in cash which has not been confirmed by the parties.
Therefore, he confirmed the addition of Rs.35,62,877/-.
Before me, ld Authorised Representative of the assessee filed paper
book and submitted that the parties from whom advance in cash was
received by the assessee of Rs.32,83,637/- during the year were supplied
goods by the assessee in the subsequent assessment year and sale invoices
were raised in the subsequent year. Thus, in the subsequent assessment
year, the said amount was offered to tax by the assessee and accepted by
the department. He submitted that the addition of the same amount in the
year under appeal would amount to double taxation, which is not
permissible in law. It was therefore his submission that the matter should
be remanded back to the file of the Assessing Officer for verifying from the
records whether the assessee has sold goods to those parties from whom
advance of Rs.32,83,637/- was received during the subsequent year and
4 ITA No. 409/CT K/ 2014 Asse ssment Year :20 10- 201 1
the said amount was offered to tax in the return of income filed by the
assessee.
The Departmental Representative had no objection to the above
submission of ld A.R. of the assessee.
In view of the above facts and circumstances of the case, in my
considered view, the matter should be restored back to the file of the
Assessing Officer for verifying from records whether the assessee had sold
goods to those parties from whom advance of Rs.32,83,637/- was claimed
to have received by the assessee during the year and the said amount was
offered to tax in the subsequent assessment year by the assessee, If the
Assessing officer finds that said amount was offered to tax by way of sale
in the subsequent year made to those parties from whom advance of
Rs.32,83,637/- was received during the year under appeal, then no
addition should be made during the year under appeal. With these
directions, this part of the ground of appeal is allowed for statistical
purposes.
The other part of the ground of appeal relates to cash advance of
Rs.5,37,877/- received in cash from Sparsh Hospital & Critical Care (P) Ltd.,
I find that ld A.R. of the assessee has made no submissions during the
course of hearing or in the written submission filed before me. Hence, I
confirm the addition of Rs.5,37,877/- to the income of the assessee. Thus,
this part of the ground of appeal is dismissed
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In the result, the appeal filed by the assessee is partly allowed for
statistical purposes.
Order pronounced in the open court on 08/03/2017 in the presence of parties. Sd/- (N.S Saini) ACCOUNTANT MEMBER Cuttack; Dated 08/03/2017 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Sri Vaibhav Raonak, Plot No.49, Ashok Nagar, Janapath, Bhubaneswar 2. The Respondent. ITO, Ward 1(2), Bhubaneswar. 3. The CIT(A)-1, Bhubaneswar 4. CIT, Bhubaneswar. 5. DR, ITAT, Cuttack BY ORDER, 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack