ASSISTANT COMMISSIONER OF INCOME TAX vs. TIRUPATI INFRABUILD P. LTD.
ISSUE
Whether additions can be made on account of sales of transaction?
HELD
Appellant also gave a detailed ledger account of all its projects which revealed that the aforesaid receipts were on account of sale transactions in ‘Hill Granage Project.’ The appellant produced a copy of the sale deed in respect of all four sale transactions and the mode of payment in relation to the said sales. It was revealed that the entire amount in relation to these sales transactions was received by cheque.
A copy of the Bank statement in which the said cheque payments were received, was also produced by the appellant. On a careful examination of these details, it was found that these four sales transactions in relation to ‘Hill Granage Project’ were duly reflected by the appellant in its books of account.
As regards the purchase transaction which was reduced by the A.O. from alleged unreported sales transaction, the appellant substantiated, with relevant evidence, the fact that the same did not relate to it.
The entire payment in relation to the said sales transactions was received by cheque in the appellant’s bank account. Thus, on the basis of these submissions and documents, I hold that the A.O. erred in making the addition of Rs.87,67,359/-. Accordingly, Ground Nos. 3 and 4 of the appeal are hereby allowed. ”
Upon a query being raised by the Bench to Ld.DR regarding availability of any material evidences to prove factual observations recorded by Ld.CIT (A) to be contrary, Ld.DR replied in negative. Even the order of Ld. AO is silent on any information/evidences contrary to observations by Ld. CIT (A). Under such circumstances, we do not find it necessary to interfere with the decision of Ld. CIT (A).
CONCLUSION
No addition on account of Sales transactions can be made where the same were duly reflected by Assessee in its books of accounts.
IN FAVOUR OF
Assessee
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