The Commissioner of Income-Tax Trivandrum V. Associated Cashew Industries

ITA/101/2013

AI Insights

The case involves an appeal by the Commissioner of Income-Tax, Trivandrum against M/s. Associated Cashew Industries concerning an income tax assessment. The dispute centered on an addition of \\u20b941,23,951 to the assessee's income, which the revenue claimed was unaccounted income. The assessee argued that this amount represented advances received and subsequently repaid, which was documented in their books. The initial assessing officer added this amount as income due to insufficient evidence of its repayment. However, the Commissioner of Income Tax (Appeals) and the Tribunal overturned this decision, leading to the revenue's appeal to the High Court. The High Court, after reviewing the submissions and the records, agreed with the lower authorities' findings and dismissed the appeal.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 811030 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-11-2013
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: JOSE JOSEPH
• Keywords: Advances; Appeal; Assessment; Income; Income Tax; Tribunal

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR & THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE WEDNESDAY, THE 6TH DAY OF NOVEMBER 2013/15TH KARTHIKA, 1935 ITA.No. 101 of 2013 ----------------------- AGAINST THE ORDER IN ITA 391/2010 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 16-11-2012 .................... APPELLANT/RESPONDENT: ----------------------------- THE COMMISSIONER OF INCOME-TAX TRIVANDRUM. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/APPELLANT: ---------------------------- M/S. ASSOCIATED CASHEW INDUSTRIES CHANDANANTHOPE, KOLLAM 691 014. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 06-11-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Manjula Chellur, C.J. & A.M. Shaffique, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - - I.T.A. No. 101 OF 2013 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 6th day of October, 2013 JUDGMENT Manjula Chellur, C.J. This appeal is filed by the revenue challenging the order of the Tribunal dated 16.11.12, so far as setting aside addition of 41,23,951/- as income. According to the assessee, ₹ this amount represent advances received by the assessee but he has repaid the said amount to various parties by way of cash on various dates and those details are reflected in the books of accounts. The assessing officer was of the opinion there was no evidence to show that the amount withdrawn from the books by debiting the said amounts to the account of various parties, therefore, it has to be treated as income of the assessee. 2. Aggrieved by this when the matter went up before Commissioner of Income Tax (Appeals), the first appellate authority accepted the contention of the assessee and deleted the said addition of 41,23,951/-. Aggrieved by the same, ₹ revenue approached the Tribunal. Tribunal after perusal of the assessment order was justified in saying that the assessing officer did not suspect the receipt of the advances which were shown as advances from various parties. There is consistent ITA No. 101 of 2013 -:2:- stand of the assessee that when they were not able to supply required quality of cashew nuts, they have to return the advances. 3. When once withdrawals are made from the books of accounts showing the said amounts as refund of advances to the parties by debiting it to their respective accounts, we are of the opinion, the CIT(appeals) as well as Tribunal were justified in opining that the assessing officer was wrong in adding this amount as income in the hands of the assessee. Revenue is unable to place on record any material indicating that these amounts were not reflected properly so far as refund of the said amounts. In the light of the observation of both the appellate authorities, we find no good reason to interfere with the same. Accordingly the appeal is dismissed at the stage of admission. Manjula Chellur, Chief Justice. A.M. Shaffique, Judge. ttb/06/11 ITA No. 101 of 2013 -:3:- "