COMMISSIONER OF INCOME TAX Vs. VINAY PRATAP SINGH

JUDGEMENT

(1.) Heard the learned counsel for the appellant.

(2.) The Revenue has preferred this Income Tax Appeal under Section 260A of the Income Tax Act challenging the order dated 22nd January, 2010 passed by Income Tax Appellate Tribunal (ITAT) Jaipur Bench 'B', Jaipur affirming the order of the Commissioner of Income Tax (Appeals)-II, Jaipur.

(3.) The Assessing Officer while going through the accounts of the assessee noticed that a sum of Rs.16,00,900/- is credited in capital account. Explanation was sought in this regard and reply of assessee was that it was an advance payment remitted by M/s India Gems and Beads, USA for supply of goods, but due to inadvertence the said amount was credited to the accounts of the assessee in the balance-sheet. However, the Assessing Officer was not satisfied and he added the said amount of Rs.16,00,900/- in the income of the assessee and directed to initiate penalty proceedings also. The assessee preferred an appeal. The appellate authority i.e. Commissioner of Income Tax (Appeals)-II, Jaipur vide its order dated 28th April, 2009 was satisfied with the explanation/reply furnished by assessee and deleted the said addition of Rs.16,00,000/-. The matter was discussed in detail by the appellate authority in Para 1.3 of the order, which is reproduced as under:-