Court :
INCOME TAX APPELLATE TRIBUNAL
Brief :
Facts in brief are that during the course of assessment proceedings, the Assessing Officer noticed that the assessee has claimed deduction of Rs.64,41,673 on account of loss being exchange difference on refund of customer’s advance. It was also noticed by the AO that the debit balance of capital account was shown at Rs.63,15,25,818.39 as compared to debit balance of capital account of Rs.46,27,95,079.33 in the immediately preceding year i.e. an amount of Rs.26,95,71,400 was withdrawn through capital accounts during the year by the partners. Therefore, the assessee has received total advance of Rs.53,35,39,319 as compared to advances received from customers amounting to Rs.43,07,33,215 in the immediately preceding year. The AO also noticed that Shri Nirav D Modi had withdrawn of Rs.26,95,71,400 through its capital account during the period. It was in this backdrop that the AO was of the view that the advances received from customers have not been used for the purposes of business and, accordingly, disallowed Rs.64,41,673. Aggrieved by the stand so taken by the Assessing Officer, assessee carried the matter in appeal before the CIT(A), who following the order of the Tribunal for the assessment year 2006-07 in assessee’s own case, deleted the addition made by the AO. The Assessing Officer is aggrieved and is in appeal before us.
Citation :
Dy. CIT, Cent. Circle -39 ….. Appellant Aayakar Bhavan, M.K. Road,Mumbai.Vs Diamond ‘R’ US .…. Respondent
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Judgement posted by
Shivani
Finance Professional
I am passionate about simplifying finance, taxation, investing, insurance, and career trends into practical insights. Through my articles, I help readers make informed financial decisions, understand industry developments, and stay updated on personal finance, CA, and business topics.
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