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2014 (8) TMI 307 - ITAT DELHICash deposits u/s 69C – Source of transaction not furnished – Held that:- The assessee stated that the amounts referred to in AIR were duly recorded in the books of account by means of cash deposits - When the books of account were produced before the AO, it was incumbent upon him to verify the veracity of the assessee’s contention as put forth before him - CIT(A) sustained the addition by basing his opinion on similar addition made for the preceding year, without verifying the assessee’s contention – thus, the matter is to be remitted back to the AO for fresh adjudication – Decided in favour of Assessee. Valuation of contract – Held that:- Assessee stated that it was following project completion method, the entire income emanating from such contract was duly offered for taxation in the immediately succeeding year - CIT(A) observed that only the profit element from the contract should have been charged to tax - proportionate net profit worked out on the basis of the contract receipts during the year vis-a-vis the total value of the contract and restricted the addition - the action of the AO in taxing the gross sum has no legs to stand on, because tax is levied on the ‘income’ and not on the ‘receipt’ - the substantial part of the contract was completed by the assessee during the year, in view of which it also received a sum – thus, the Percentage completion method is correctly applicable – order of the CIT(A) is upheld – Decided against Revenue.
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