ITO Vs Sri Tadi Vasudeva Rao (ITAT Visakhapatnam)
Conclusion:
AO was justified in making addition under section 68 of credit balance showing in assessee’s books of accounts against the Nil balance shown by the creditors in their books of accounts as on verification of the books of accounts of the creditor, it was found that there was no balance outstanding against assessee and the same indicated that the credit balance shown in the books of the assessee was bogus.
Held:
AO found that assessee had shown the credit balance of Rs.4,34,129/- in his books of accounts against the Nil balance shown by the creditors in their books of accounts. Assessee did not reconcile the difference, therefore, AO made the addition of Rs.4,34,129/- as unexplained credit. It was held on verification of the books of accounts of the creditor, it was found that there was no balance outstanding against assessee, which indicated that the credit balance shown in the books of the assessee was bogus. Thus, AO was justified in making addition under section 68 as assessee could not place any evidence to prove the genuineness of the outstanding amount.
FULL TEXT OF THE ITAT JUDGEMENT
These appeals are filed by the revenue and the assessee against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]-12, Hyderabad vide Appeal No. 10376/2017-18 dated 13.04.2018, Appeal No.10375/2014-15 dated 13.04.2018 and 10376/2017-18 dated 13.04.2018 respectively for the Assessment Year (A.Y.) 2011-12 and 2012-13. The assessee filed the cross objections against the order the Ld. CIT(A) for the A.Y. 2012-13.
I.T.A. No.391/Viz/2018 and 392/Viz/2018
2. Delay The assessee received the order of the Ld. CIT(A) on 08.05.2018 and ought to have filed the appeal on or before 07.07.2018 and the assessee filed appeals on 24.07.2018, with the delay of 17 days in filing the appeal. The assessee filed condonation petition assigning medical reasons. The assessee submitted that he was suffering from jaundice and hypertension which caused delay in filing the appeal.
3. We have heard both the parties and convinced that there is reasonable cause for delay in filing the appeal. The assessee is aged 72 years. After hearing both the sides, the delay in filing the appeal is condoned.
I.T.A. No.391/Viz/2018
4. The assessee is engaged in the business of cashew trading. During the assessment year 2011-12, the assessee filed the return of income declaring total income of Rs.3,55,220/- and the assessment was completed u/s 143(3) of Income Tax Act, 1961 (‘Act’ in short) on total income of Rs.25,01,160/-. The Assessing Officer (AO) made the following additions to the returned income:
