9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1869 - AT - Income TaxDisallowance at 25% of the purchases and all expenses including depreciation - CIT(A) deleted the addition - Held that - Since the disallowance was made in an ex-parte assessment order, once the assessee was given an opportunity to reconcile its expenses, the Assessing Officer was satisfied with the quality of the evidence produced by the assessee. He did not find any discrepancies (as disclosed from his observation) in the purchases and commission payment shown by the assessee. Therefore, we do not find any error in the order of the CIT(A); accordingly, this ground of appeal is rejected. - Decided against revenue. Addition on estimated basis out of commission income - CIT(A) deleted the addition - Held that - The commission income is verifiable from the TDS certificate and, therefore, estimate of such income at lumsum amount is not required and, therefore, the addition of ₹ 1,33,679/- is hereby deleted. - Decided against revenue. Addition u/s 68 - CIT(A) deleted the addition - Held that - In the remand proceedings, the assessee has substantiated that this amount represents the loan taken from ICICI Bank Ltd for the purpose of vehicle. There is no unexplained credit in the account of the assessee. Ld. First Appellate Authority has deleted the addition after appreciating the remand report and the evidences produced by the assessee. Therefore, we do not find any error in the order of the CIT(A) - Decided against revenue. Addition
Issues:
1. Deletion of addition of Rs. 78,03,060 2. Addition of Rs. 1,33,679 on estimated basis of commission income 3. Deletion of addition of Rs. 24,19,324 under section 68 of the Income-tax Act Analysis: Issue 1: Deletion of addition of Rs. 78,03,060 The Revenue appealed against the order of the ld. Commissioner of Income-tax (Appeals)-I, Surat regarding the deletion of an addition of Rs. 78,03,060. The Assessing Officer had disallowed 25% of the claim of the assessee out of purchases and depreciation. However, the ld. CIT(A) partly allowed the appeal of the assessee after considering the remand report, and deleted the major addition. The CIT(A) found that no discrepancies were noticed in purchases and commission expenditure after verification. The Assessing Officer was satisfied with the evidence produced by the assessee, leading to the deletion of the addition. The Tribunal rejected the Revenue's appeal as they did not find any error in the CIT(A)'s order. Issue 2: Addition of Rs. 1,33,679 on estimated basis of commission income The Revenue contested the deletion of an addition of Rs. 1,33,679 made on an estimated basis of commission income. The Assessing Officer estimated the commission income as the assessee failed to submit TDS details. However, the CIT(A) deleted the addition stating that the commission income was verifiable from the TDS certificate. The Tribunal upheld the CIT(A)'s decision after reviewing the findings and remand report, finding no error in the deletion of the addition. Issue 3: Deletion of addition of Rs. 24,19,324 under section 68 of the Income-tax Act The Revenue challenged the deletion of an addition of Rs. 24,19,324 made by the Assessing Officer under section 68 of the Income-tax Act. The assessee clarified that this amount represented a loan from ICICI Bank Ltd for a vehicle, with no unexplained credit in their account. The CIT(A) deleted the addition based on the remand report and evidence provided by the assessee. The Tribunal found no error in the CIT(A)'s decision and rejected the Revenue's appeal. In conclusion, the Tribunal dismissed the appeal of the Revenue and the assessee's Crossobjection, upholding the decisions made by the CIT(A) regarding the various additions and deletions in the assessment.
|
