DCIT, New Delhi V. M/s Capital Care India Pvt. Ltd., New Delhi

ITA 2732/DEL/2013

• Counselvise Citation: 273220114 RSA 2013
• Duration Of Justice: 1 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 02-09-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 06-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S AHUJA
• Assessee Lawyers: PARMINDER KAUR
• Keywords: Unexplained cash credit; Business income; Business expenditure
• Section: 68; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH B BB B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI H.S. SIDHU H.S. SIDHU H.S. SIDHU H.S. SIDHU, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 2732/DEL/2013 2732/DEL/2013 2732/DEL/2013 2732/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008 - -- - 09 0909 09 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -3(1), 3(1), 3(1), 3(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S CAPITAL CARE INDIA PVT.LTD., M/S CAPITAL CARE INDIA PVT.LTD., M/S CAPITAL CARE INDIA PVT.LTD., M/S CAPITAL CARE INDIA PVT.LTD., 603, ASHISH CORPORATE TOWER, 603, ASHISH CORPORATE TOWER, 603, ASHISH CORPORATE TOWER, 603, ASHISH CORPORATE TOWER, KARKARDOOMA COMMUNITY CENTER, KARKARDOOMA COMMUNITY CENTER, KARKARDOOMA COMMUNITY CENTER, KARKARDOOMA COMMUNITY CENTER, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 092. 110 092. 110 092. 110 092. PAN : AABCC5694E. PAN : AABCC5694E. PAN : AABCC5694E. PAN : AABCC5694E. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.S. AHUJA, CA. RESPONDENT BY : SMT. PARMINDER KAUR, SR. DR. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-VI, NEW DELHI DATED 26 TH FEBRUARY, 2013 FOR THE AY 2008-09. 2. GROUND NO.1 RAISED BY THE REVENUE IN THIS APPEAL READS AS UNDER:- WHETHER THE LD. CIT(A) HAS ERRED ON FACTS AND IN L AW IN DELETING ADDITION ON ACCOUNT OF UNEXPLAINED CREDITS BY IGNORING THE FACT THAT THE PARTIES THEMSELVES SUBMI TTED THAT THE SAME WERE BOOKED AS EXPENSES IN THEIR BOOK S OF ACCOUNT. ITA-2732/DEL/2013 2 3. SO FAR AS THE ABOVE GROUND IS CONCERNED, THE ASS ESSING OFFICER MADE THE ADDITION OF `3,87,27,750/- AS UNEXPLAINED CREDIT/DEPOSIT BY INVOKING SECTION 68 OF THE INCOME-TAX ACT, 1961. L EARNED CIT(A) DELETED THE SAME. HENCE, THIS APPEAL BY THE REVENU E VIDE GROUND NO.1 OF THEIR APPEAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. THE ASSESSEE I S A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF FINANCIAL CONSULTANCY AND SALE AND PURCHASE OF SHARES. AT THE TIME OF HEARING BEFORE THE CIT(A), THE ASSESSEE POINTED OUT THAT THE ENTIRE AMOUNT RECEIVE D BY THE ASSESSEE WAS ADVANCE TOWARDS THE SERVICES TO BE PROVIDED BY THE ASSESSEE. IT WAS ALSO EXPLAINED THAT THE FEE FOR SERVICES TO THE ASSESSEE ACCRUES ONLY WHEN THE SERVICES ARE COMPLETED TO THE SATISFA CTION OF THE CLIENT. OTHERWISE, THE ENTIRE AMOUNT IS REFUNDED TO THE CUS TOMER. IT WAS ALSO EXPLAINED THAT ALL THE ADVANCES RECEIVED HAVE EITHE R BEEN ACCOUNTED FOR AS INCOME IN THE SUBSEQUENT YEARS OR HAVE BEEN REFUNDED TO THE CUSTOMERS. THE CIT(A) CALLED FOR THE REMAND REPORT IN WHICH THE ASSESSING OFFICER CONCLUDED AS UNDER:- FROM THE FACT NOTED ABOVE IT IS CLEAR THAT THE AMO UNT SHOWN AS ADVANCE IS NOT APPEARING AS ADVANCE IN THE BALANCE SHEET COMPANIES CONCERNED. THIS AMOUNT WAS PAID AS BUSINESS EXPENSES AND TDS WAS ALSO DETECTED . IN VIEW OF ALL THESE FACTS IT IS CLEARLY PROVED THA T THE ADVANCE OF SIMPLEX INFRASTRUCTURE LIMITED RS.1,00,00,000/-, SUBHASH PROJECTS & MARKETING LIMI TED RS.2,00,000/-, SHRI LAXMI COTSYAN LIMITED RS.2,80,27,750/- & DOLPHIN DEVELOPERS LIMITED RS.5,00,000/- IS ACTUALLY INCOME OF THE ASSESSEE COMPANY BUT THE SAME WAS SHOWN AS ADVANCE. THE ASSESSEE COMPANY CLAIMED VARIOUS EXPENSES IN THE P& L ITA-2732/DEL/2013 3 ACCOUNT AND EXPENSES REGARDING THIS WORK ARE ALSO INCLUDED IN THOSE EXPENSES. THEREFORE, THE TOTAL AMOUNT SHOWN AS ADVANCE AT RS.3,87,27,750/- IS CLEA RLY RECEIPTS IN THE HANDS OF THE COMPANY. IN THE NUT S HELL THE AMOUNT SHOWN AS ADVANCES IS TAXABLE BUSINESS INCOME. 5. THUS, IN THE REMAND REPORT, THE ASSESSING OFFICE R CHANGED THE STAND OF THE REVENUE THAN WHAT WAS TAKEN DURING ASS ESSMENT PROCEEDINGS. DURING ASSESSMENT PROCEEDINGS, THE AS SESSING OFFICER TREATED THE CREDIT AS UNEXPLAINED CREDIT. HOWEVER, WHEN DURING REMAND PROCEEDINGS, ALL THE PERSONS FROM WHOM THE A DVANCE WAS RECEIVED APPEARED BEFORE THE ASSESSING OFFICER AND FILED THE DETAILS, HE AGREED THAT THE AMOUNT RECEIVED FROM THEM WAS IN TH E NATURE OF ADVANCE FOR SERVICES. HE, THEREFORE, REQUESTED THE CIT(A) TO SUSTAIN THE ADDITION AS RECEIPT IN THE HANDS OF THE ASSESSE E AND NOT AS UNEXPLAINED CREDIT. THE CIT(A) DELETED THE ADDITIO N WITH THE FOLLOWING FINDING:- FROM THE ABOVE DISCUSSION, IT IS CLEAR THAT THE CA SE LAWS RELIED UPON BY THE AO WERE BASED ON DIFFERENT FACTS AND CIRCUMSTANCES FROM THE PRESENT CASE OF TH E APPELLANT AND THE SAME ARE DISTINGUISHABLE. IN THE PRESENT CASE, THE IDENTITY OF THE AFORESAID FOUR CR EDITORS WERE ESTABLISHED BEYOND DOUBT WITH THE HELP OF THEI R PAN NO. AND THEIR BEING ACTIVE LISTED COMPANY WITH THE REGISTRAR OF COMPANIES. THE GENUINENESS OF THE TRANSACTION CAN ALSO NOT BE DOUBTED AS THE TRANSACT ION TOOK PLACE BETWEEN THESE FOUR CONCERNS AND THE APPELLANT COMPANY THROUGH THE BANKING CHANNEL AND THE AMOUNTS OF ADVANCE RECEIVED FROM THEM WERE OFFERED FOR TAXATION BY THE APPELLANT COMPANY AS PE R AGREEMENT EITHER IN THE ASSESSMENT YEAR 2009-10 OR IN THE ASSESSMENT YEAR 2012-13. ITA-2732/DEL/2013 4 THE TRANSACTIONS WERE DULY CONFIRMED BY THESE FOUR CONCERNS BEFORE THE AO DURING THE REMAND PROCEEDING S. THE AO HIMSELF HAS NOT DOUBTED THEIR CREDITWORTHINE SS IN THE REMAND PROCEEDINGS AND HE HAS OFFERED NO COMMENTS ON THIS ASPECT IN HIS REMAND REPORT. THEREFORE, IN MY OPINION THE AO HAS ERRED IN INVOKI NG SECTION 68 OF THE I.T. ACT IN THE CASE OF THE APPEL LANT AND THE ADDITION MADE BY THE AO OF RS.3,87,27,750/- CANNOT BE SUSTAINED. HENCE, THE AO IS DIRECTED TO DELETE THE SAME. 6. HOWEVER, IN THE GROUND OF APPEAL, THE REVENUE HA S CHALLENGED THE DELETION OF ADDITION ON ACCOUNT OF UNEXPLAINED CREDIT. NO SPECIFIC GROUND IS RAISED THAT THE CIT(A) ERRED IN NOT TAXIN G THE ADVANCE AS TRADING RECEIPT. MOREOVER, WE FIND THAT THOUGH THE CIT(A) HAS NOT DEALT WITH THE ISSUE OF TAXABILITY OF THE ADVANCE AS REVE NUE RECEIPT OF THIS YEAR, HE HAS DEALT WITH THE SAME IN DETAIL WHILE DE ALING GROUND NO.2. THEREFORE, THE SAME WOULD BE CONSIDERED WHILE DEALI NG WITH GROUND NO.2 OF THE REVENUES APPEAL. SO FAR AS THE ADDITI ON OF `3,87,27,750/- IS CONCERNED, LEARNED CIT(A) PREPARED THE CHART IN RESPECT OF ALL THE FOUR PARTIES GIVING THE DETAILS OF AMOUNT RECEIVED DURING THE FY 2007- 08 I.E. THE YEAR RELEVANT TO THE YEAR UNDER CONSIDE RATION AND ALSO THE OUTSTANDING BALANCE. THE CHART GIVEN AT PAGE 3 OF THE CIT(A)S ORDER IS REPRODUCED HEREIN BELOW FOR READY REFERENCE:- S.NO. NAME AMOUNT RECEIVED DURING FINANCIAL 2007-08 (IN RS) RELEVANT TO ASSTT. YEAR 2008- 09 AMOUNT OUTSTANDING AS ON 31.03.2008 (IN RS) 1 M/S SIMPLEX INFRASTRUCTURE LTD. NIL 1,00,00,000/ - 2 M/S SUBHASH PROJECTS & 2,00,000/ - 2,00,000/ - ITA-2732/DEL/2013 5 MARKETING LTD. 3 M/S SHRI LAXMI COTSYAN LTD. 1,05,00,000/ - 2,80,27,750/ - 4 M/S DOLPHIN DEV ELOPER LTD. 5,00,000/ - 5,00,000/ - TOTAL 1,12,00,000/ - 3,87,27,750/ - 7. FROM THE ABOVE, IT IS EVIDENT THAT THE AMOUNT RE CEIVED DURING THE FINANCIAL YEAR 2007-08 WHICH CAN BE CONSIDERED FOR AY 2008-09 IS ONLY `1,12,00,000/- AND NOT `3,87,27,750/-. ALL THE FOU R PARTIES APPEARED BEFORE THE ASSESSING OFFICER DURING THE REMAND PROC EEDINGS AND HAVE EXPLAINED THAT THEY HAVE PAID THE MONEY FOR THE FIN ANCIAL CONSULTANCY TO BE PROVIDED BY THE ASSESSEE. THEY HAVE ALSO PRO DUCED THE NECESSARY EVIDENCE IN THIS REGARD BEFORE THE ASSESS ING OFFICER AND HAS ALSO POINTED OUT THAT ON THE ABOVE PAYMENT, TDS HAS ALSO BEEN DEDUCTED BY THEM AS PER LAW. CONSIDERING THESE FAC TS, THE ASSESSING OFFICER WAS SATISFIED THAT THE CREDIT CANNOT BE TRE ATED AS UNEXPLAINED CREDIT AND THEREFORE, HE HIMSELF HAS RECOMMENDED TH AT THE SAME SHOULD BE TREATED AS BUSINESS INCOME. BE THAT AS I T MAY, THE ADDITION MADE BY THE ASSESSING OFFICER FOR AN AMOUNT OF `3,8 7,27,750/- AS UNEXPLAINED CREDIT CANNOT BE SUSTAINED UNDER SECTIO N 68 AND HAS BEEN RIGHTLY DELETED BY THE LEARNED CIT(A). SO FAR AS T HE SECOND ASPECT IS CONCERNED I.E., WHETHER THE SAME SHOULD BE ASSESSED AS PROFESSIONAL INCOME OF THE ASSESSEE OF THE YEAR UNDER CONSIDERAT ION WOULD BE CONSIDERED WHILE DEALING WITH GROUND NO.2. 8. GROUND NO.2 OF THE REVENUES APPEAL READS AS UND ER:- 2. WHETHER THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING ADDITION ON ACCOUNT OF INCOME AS ADVANC E IGNORING THE FACT THAT- ITA-2732/DEL/2013 6 (A) THE ASSESSEE HAS RECEIVED THE AMOUNT IN LIEU OF THE SERVICES I.E. THE BUSINESS OF THE ASSESSEE AND ACCORDINGLY QUALIFY AS TRADING RECEIPT. (B) THE ASSESSEE IS CONTINUOUSLY FOLLOWING MERCANTI LE SYSTEM OF THE ACCOUNTING. (C) THE AO HAS JUDICIOUSLY CALCULATED THE DISALLOWA NCE ON THE LINES OF GP RATIO. 9. THE FACTS RELEVANT TO THIS GROUND ARE THAT DURIN G THE ACCOUNTING YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDER ATION, THE ASSESSEE HAS SHOWN THE ADVANCE RECEIVED FROM CUSTOM ERS AMOUNTING TO `1,35,25,000/-, THE DETAILS OF WHICH ARE AS UNDE R:- ACCO UNT ADVANCE RECEIVED FROM CUSTOMERS KESAR HOSPITAL LTD. 500000 RATHI UDYOG LTD. 1000000 ALOK INDS.LTD. 3225000 CHIRIPAL INDS. LTD. 700000 RATHI RAJASTHAN STEEL MILLS LTD. 600000 AHLUWALIA CONTRACTS (I) LTD. 5000000 INDIAN VIDYUT & ISPAT LTD. 2500000 TOTAL 13525000 10. AFTER DETAILED DISCUSSION, THE ASSESSING OFFICE R APPLIED NET PROFIT RATE OF 26.44% THEREON AND MADE THE ADDITION OF `35 ,76,010/-. ON APPEAL, LEARNED CIT(A) DELETED THE ADDITION WITH TH E FOLLOWING FACTUAL FINDING:- 6.2 I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS MA DE BY THE LD.AR AND HAVE GONE THROUGH THE ASSESSMENT ORDER. IT IS OBSERVED THAT THE AO HAS ESTIMATED TH E NET ITA-2732/DEL/2013 7 PROFIT RATIO AT THE RATE OF 26.44% ON THE TOTAL AMO UNT OF ADVANCE RECEIVED FROM THE FOLLOWING SEVEN PARTIES O F RS.1,35,25,000/-. NAME OF PARTY ADVANCE RECEIVED FROM CUSTOMERS KESAR HOSPITAL LTD. 500000 RATHI UDYOG LTD. 1000000 ALOK INDUSTRIES LTD. 3225000 CHIRIPAL INDUSTRIES LTD. 700000 RATHI RAJASTHAN STEEL MILLS LTD. 600000 AHLUWALIA CONTRACTS (I) LTD. 5000 000 INDIAN VIDYUT & ISPAT LTD. 2500000 TOTAL 1,32,25,000 OUT OF THESE SEVEN PARTIES, THE APPELLANT COMPANY H AS ALREADY CREDITED THE AMOUNT OF RS.7,00,000/- IN ITS P&L A/C DURING THE RELEVANT A.Y. 2008-09. HENCE, THIS AMOUNT IS NOT LIABLE TO BE TAXED AGAIN. IT IS FURT HER OBSERVED THAT THE AMOUNT OF ADVANCE RECEIVED FROM AHLUWALIA CONTRACTS (I) LTD. OF RS.50 LAKHS AND RS. 6 LAKHS RECEIVED FROM RATHI RAJASTHAN STEEL MILLS LTD . HAS BEEN REFUNDED BY THE APPELLANT COMPANY ON 16.07.2008 AND 14.05.2008 RESPECTIVELY I.E. DURING THE SUBSEQUENT A.Y. 2009-10. FURTHER, THE AMOUNTS OF ADVANCE RECEIVED FROM M/S KESHAR HOSPITAL LTD. OF RS.5,00,000/-, ALOK INDUSTRY LTD. OF RS.32,25,000/- , RATHI UDYOG LTD. OF RS.10,00,000/- AND INDIAN VIDYUT AND ISPAT LTD. OF RS.25,00,000/- WERE CREDITED AS INCOM E FOR THE A.Y. 2011-12 AND OFFERED FOR TAXATION. THE AO HAS MADE THE ADDITION ON THE GROUND THAT SOM E OF THE PARTIES HAVE BOOKED THESE AMOUNTS AS EXPENSE S IN THEIR BOOKS OF ACCOUNTS AS PROFESSIONAL FEES. I N MY OPINION, THE AO ACTION IS NOT CORRECT. IT IS OBSER VED THAT UNDER THE ACCRUAL SYSTEM OF ACCOUNTING, INCOME IS RECOGNIZED WHEN THE SERVICES FOR WHICH FEES ARE RECEIVED, ARE RENDERED. AS PER AS-9 ALSO, INCOME A RE NOT RECOGNIZED UNLESS SERVICES ARE RENDERED. THEREFORE, THE INCOME CANNOT BE ASSESSED IN THE YEA R OF RECEIPT. IT IS OBSERVED THAT THE APPELLANT COMPANY HAS CONSISTENTLY FOLLOWING THE MERCANTILE SYSTEM OF ITA-2732/DEL/2013 8 ACCOUNTING AND AS PER AS-9 FOLLOWING PRINCIPLE OF COMPLETED SERVICE CONTRACT METHOD. AS PER PARA 7.1(II) OF AS-9 PERFORMANCE CONSISTS O F THE EXECUTION OF A SINGLE ACT. ALTERNATIVELY, SERVICES ARE PERFORMED IN MORE THAN A SINGLE ACT, AND THE SERVIC ES YET TO BE PERFORMED ARE SO SIGNIFICANT IN RELATION TO THE TRANSACTION TAKEN AS A WHOLE THAT PERFORMANCE CANNO T BE DEEMED TO HAVE BEEN COMPLETED UNTIL THE EXECUTIO N OF THOSE ACTS. THE COMPLETED SERVICE CONTRACT METH OD IS RELEVANT TO THESE PATTERNS OF PERFORMANCE AND ACCORDINGLY REVENUE IS RECOGNIZED WHEN THE SOLE OR FINAL ACT TAKES PLACE AND THE SERVICE BECOMES CHARGEABLE. 11. THEREAFTER, LEARNED CIT(A) DISCUSSED VARIOUS DE CISIONS AND ULTIMATELY DELETED THE ADDITION MADE BY THE ASSESSI NG OFFICER. AT THE TIME OF HEARING BEFORE US, THE MAIN ARGUMENT OF THE LEARNED DR WAS THAT THE ASSESSEE IS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING AND MOREOVER, THE FEE WAS ALREADY RECEIVED BY THE ASSES SEE. THE ASSESSEE HAS STARTED RENDERING SERVICES TO THE CUSTOMERS AND THE EXPENDITURE INCURRED FOR RENDERING OF SUCH SERVICES IS ALREADY BOOKED BY THE ASSESSEE. THE ASSESSING OFFICER HAS NOT TAXED THE ENTIRE RECEIPT BUT ONLY APPLIED THE NET PROFIT RATE. HE, THEREFORE, S UBMITTED THAT THE ORDER OF THE ASSESSING OFFICER SHOULD BE SUSTAINED. 12. THE LEARNED COUNSEL FOR THE ASSESSEE STATED THA T THE NATURE OF THE ASSESSEES BUSINESS IS SUCH THAT UNTIL THE SERV ICES SO PROVIDED BY THEM ARE COMPLETED TO THE SATISFACTION OF THE CLIEN T, THE AMOUNT OF PROFESSIONAL FEES RECEIVED IS SHOWN AS ADVANCE AGAI NST ASSIGNMENT BECAUSE AS PER AGREEMENT/UNDERSTANDING WITH THE CUS TOMER, THE FEE RECEIVED IN ADVANCE IS LIABLE TO BE REFUNDED IN CAS E THE ASSIGNMENT IS NOT COMPLETED TO THE SATISFACTION OF THE CUSTOMER. THIS IS ALSO A TRADE ITA-2732/DEL/2013 9 PRACTICE. THE ASSESSEE TRANSFERS SUCH ADVANCE AMOU NT TO THE INCOME HEAD IN THE PROFIT & LOSS ACCOUNT WHEN WORK GETS FU LLY EXECUTED TO THE SATISFACTION OF THE CUSTOMER. IN CASE, WORK DOES N OT GET EXECUTED TO THEIR SATISFACTION, THEN THE ENTIRE AMOUNT HAS TO B E REFUNDED. HE FURTHER SUBMITTED THAT THE ASSESSEE IS FOLLOWING TH E SAME METHOD OF ACCOUNTING SINCE PAST MANY YEARS AND IT HAS ALWAYS BEEN ACCEPTED BY THE REVENUE IN THE ORDER PASSED UNDER SECTION 143(3 ) ALSO. HE FURTHER STATED THAT IN SEVERAL CASES, IF THE SERVICES COULD NOT BE RENDERED TO THE SATISFACTION OF THE CUSTOMERS, THE FEES HAS ACT UALLY BEEN REFUNDED AND THE DETAILS HAVE BEEN FURNISHED BY THE ASSESSEE BEFORE THE CIT(A) AND WHICH IS ALSO DISCUSSED BY HIM AT PAGES 11 & 12 OF HIS ORDER. HE SUBMITTED THAT IN FACT, TOTAL CREDIT IN THE CUSTOME RS ADVANCE ACCOUNT WAS `4,07,52,750/-. THE ASSESSEE HAS EXPLAINED WIT H REFERENCE TO THE SUBSEQUENT YEARS ACCOUNT ABOUT EACH AND EVERY ADVAN CE FROM CUSTOMERS AND THE CIT(A) HAS GIVEN THE SAME IN A CH ART FORM AT PAGES 11 & 12 OF HIS ORDER. HE REFERRED TO THE ORDER AND POINTED OUT THAT MOST OF THE AMOUNTS HAVE BEEN RECOGNIZED AS INCOME IN THE SUBSEQUENT YEAR AND SOME AMOUNT WAS REFUNDED SAY TH E SUM OF `6 LAKHS WAS REFUNDED TO RATHI RAJASTHAN STEEL MILLS L TD. ON 14.5.2008, THE SUM OF `50 LAKHS WAS REFUNDED TO AHLUWALIA CONT RACTS (INDIA) LTD. ON 16.7.2008, AND THE REMAINING AMOUNT WAS BOOKED A S INCOME IN THE SUBSEQUENT YEARS AND HAS BEEN TAXED IN THOSE YEARS. THE ABOVE FACTS HAVE NOT BEEN CONTROVERTED BY THE REVENUE BEFORE US . THE ASSESSEE HAS GIVEN COMPLETE DETAILED EXPLANATION IN RESPECT OF EACH AND EVERY ADVANCE THOUGH THE ASSESSING OFFICER HAS CONSIDERED THE ADVANCE OF `1,35,25,000/- BUT THE ASSESSEE HAS GIVEN THE EXPLA NATION FOR THE ENTIRE OUTSTANDING AMOUNT OF `4,07,52,750/-. FOR R EADY REFERENCE, THE SAME IS REPRODUCED BELOW:- ITA-2732/DEL/2013 10 ACCOUNT NAME AMOUNT (RS.) DATE OF RECEIPT REMARKS KESAR HOSPITAL LTD. 500,000.00 F.Y. 2007 - 08 TO INCOME A/C IN 2010-11 SUBHASH PROJECTS & MARKETING LTD. 2,00,000.00 F.Y. 2007 TO INCOME A/C IN 2008-09 SIMPLEX INFRASTRUCTURES LTD. 1,00,00,000.00 F.Y. 2006 - 07 TO INCOME A/C IN 2010-11 SHRI LAKSHMI COTSYN LIMITED 1,05,00,000.00 70,27,750.00 1,05,00,000.00 2,80,27,750.00 2005 - 06 2006-07 2007-08 TO INCOME ACCOUNT 1,75,27,750/- IN 2008-09 1,05,00,000/- IN 2009-10 RATHI RAJASTHAN STEEL MILLS LTD. 6,00,000.00 REFUNDED ON 14.05.2008 CHIRIPAL INDUSTRIES LTD. 7,00,000.00 TO INCOME A/C IN 2008-09 DOLPHIN DEVELOPERS LTD. 500,000.00 TO INCOME A/C IN 2010-11 ALOK INDUSTRIES LTD. 3,225,000.00 TO INCOME A/C IN 2010-11 RATHI UDYOG LTD. 10,00,000.00 TO INCOME A/C IN 2010-11 AHLUWALIA CONTRACTS (INDIA) LTD. 50,0 0,000.00 REFUNDED ON 16.07.2008 INDIAN VIDYUT & ISPAT LTD. 25,00,000.00 TO INCOME A/C IN 2010-11 OUTSTANDING AMOUNT 4,07,52,750.00 13. NO DISCREPANCY IN THE ABOVE WORKING HAS BEEN PO INTED OUT BY THE REVENUE. THE REVENUE HAS ALSO NOT DISPUTED THA T THE SIMILAR METHOD HAS BEEN ACCEPTED BY THE REVENUE IN THE PREC EDING YEARS. IN VIEW OF THE TOTALITY OF THE ABOVE FACTS, WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF LEARNED CIT(A). THE SAME IS SUSTAINED AND THE REVENUES APPEAL IS DISMISSED. ITA-2732/DEL/2013 11 14. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 31 ST OCTOBER, 2014. SD/- SD/- ( (( ( H.S. SIDHU H.S. SIDHU H.S. SIDHU H.S. SIDHU ) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 31.10.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -3(1), NEW DELHI. 3(1), NEW DELHI. 3(1), NEW DELHI. 3(1), NEW DELHI. 2. RESPONDENT : M/S CAPITAL CARE INDIA PVT.LTD., M/S CAPITAL CARE INDIA PVT.LTD., M/S CAPITAL CARE INDIA PVT.LTD., M/S CAPITAL CARE INDIA PVT.LTD., 603, ASHISH CORPORATE TOWER, 603, ASHISH CORPORATE TOWER, 603, ASHISH CORPORATE TOWER, 603, ASHISH CORPORATE TOWER, KARKARDOOMA COMMUNITY CENTER, KARKARDOOMA COMMUNITY CENTER, KARKARDOOMA COMMUNITY CENTER, KARKARDOOMA COMMUNITY CENTER, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 092. 110 092. 110 092. 110 092. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR