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Section 4 of the Income-tax Act, 1961 - Income - Chargeable as - Advance received for supply of goods, which was mistakenly credited in capital account of assessee, was not chargeable to tax as revenue receipt [In favour of assessee] The Assessing Officer, while going through the accounts of the assessee, noticed that certain sum was credited in the capital account. The assessee explained that it was an advance payment remitted by a foreign property 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 in the income of the assessee. On appeal, the Commissioner (Appeals) was satisfied with the explanation/reply furnished by assessee and deleted the said addition. The Tribunal upheld findings recorded by the Commissioner (Appeals). Held that the question with regard to the explanation furnished by the assessee in respect of the disputed amount as to whether it was an income of the assessee or it was only an advance was only a question of fact and there was concurrent finding of fact by both the authorities below, which could not be interfered with. JUDGMENT Narendra Kumar Jain-I, J. - Heard the learned counsel for the appellant. 2. The Revenue has preferred this income-tax appeal under section 260A of the Income-tax Act, 1961, challenging the order dated January 22, 2010, passed by the 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 the capital account. Explanation was sought in this regard and reply of the 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…

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