The assessee, engaged in the business of running a ginning mill and dealing in cotton, declared additional income pursuant to search and paid tax thereon. The Assessing Officer made additions under section 69C on the basis of seized documents showing cash payments. The Tribunal held that the assessee had reconciled the cash payments with the books of account and the Commissioner (Appeals), after verification, rightly deleted the reconciled additions as the expenditure was duly recorded in the books.\u00a0 The Assessing Officer made an addition alleging that the assessee recovered unloading charges from farmers without recording the same in its books. The Tribunal held that it was a common trade practice for farmers to pay unloading charges directly to labourers and the Revenue failed to establish that the assessee had either recovered such charges from farmers or made the payments itself. The Commissioner (Appeals) rightly deleted the addition. The additions were made on the basis of a rough paper containing a message seeking cash for purchase of stores, spares and maintenance of machinery and on account of alleged sale of de-oiled cakes. The Tribunal held that the receipts were duly reflected in the books of account and the Assessing Officer failed to rebut the assessee’s explanation with any evidence. The additions were therefore deleted. The assessee had voluntarily declared additional income during search and paid tax thereon. The Tribunal held that, in the absence of specific incriminating material supporting the additions made by the Assessing Officer, the Commissioner (Appeals) rightly telescoped the additions against the surrendered income and deleted the separate additions.\u00a0 The Tribunal found that there was no discrepancy in the physical quantity of stock and that the difference arose only on account of valuation during the middle of the financial year. Since the books of account had not been rejected under section 145(3) and the year-end valuation had been accepted, the addition towards excess stock was unsustainable. The addition sustained by the Commissioner (Appeals) on account of alleged stock deficit was also directed to be telescoped against the surrendered income.(AY. 2015-16).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 69C : Unexplained expenditure-Cash payments reflected in seized documents duly reconciled with books of account-Addition rightly deleted-Recovery from farmers towards unloading charges-Common trade practice-No evidence of receipt by assessee-Addition deleted-Cash receipts and sale of de-oiled cakes-Entries reflected in books-No rebuttal by Assessing Officer-Addition deleted-Additional income voluntarily surrendered-Telescoping against additions-Separate addition not justified-Excess stock-Difference only in valuation and not quantity-Books not rejected-Addition deleted. [S.68, 132, 145(3)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63860","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gC0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63860"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63860\/revisions"}],"predecessor-version":[{"id":63861,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63860\/revisions\/63861"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}