Addition @ 0.55% of closing balances of creditors and debtors as ...

AO's Addition of 0.55% as Bogus Deleted Due to Lack of Section 41(1) Invocation and Industry Trend Analysis.

June 10, 2022

Case Laws Income Tax AT

Addition @ 0.55% of closing balances of creditors and debtors as bogus - If the AO is not satisfied about the books of the assessee,he can reject the same and make an estimate of the income based upon industry trend or past record of the assessee. No such exercise has been done by the AO. This is fatal to the assesseement here. More ever, outstanding creditors which are trade creditors can be added only under the provisions of section 41(1) of the Act. No case has been made out that section 41(1) has been invoked and there is disallowances as per provisions of section 41(1) - Additions deleted - AT

View Source

← Previous Next →

Addition @ 0.55% of closing balances of creditors and debtors as ...

AO's Addition of 0.55% as Bogus Deleted Due to Lack of Section 41(1) Invocation and Industry Trend Analysis.

June 10, 2022

Case Laws Income Tax AT

You may also like:

Penalty u/s 271(1)(c) for furnishing inaccurate particulars of income - adjustment made u/s 92CA - penalty levied u/s 271(1)(c) on the adjustment made u/s 92CA is not...

Addition u/s 68 OR 41(1) - unexplained cash credit - Cessation of liability - The appellant contested additions to their income, alleging bogus sundry creditors. Despite...

Imposition of penalty u/s 271(1)(c) of the Income Tax Act for two types of additions: (1) the addition made u/s 50C on the difference between stamp duty value and sale...

AO determined commission from alleged bogus purchases and sales, made addition. ITAT held AO should have either rejected books of account and determined actual profit,...

Addition on account of share premium received by the assessee u/s 56(1) - income from other sources - the addition has been admittedly made by the ld. AO u/s.56(1) of...

Additions towards Bogus purchases - Estimation of profit - Purchases are to be removed, the corresponding sale is also required to be removed from the profit and loss...

Penalty levied u/ss 271(1)(c) and 271AAA for unexplained investment and addition made by adopting net profit as per the books of accounts at 12.85% on the suppressed...

Disallowance - excess consumption of Tendu leaves - AO's addition 1/3rd, was found to be reasonable - HC

The legal judgment addressed various issues. Firstly, regarding addition u/s 68 for unsecured loans, the AO questioned the creditworthiness of the loans. The CIT(A)...

The assessment order was passed without verifying the allowability of the cost of improvement as per Section 55(1)(b)(2), rendering it erroneous and prejudicial to...

The Income Tax Appellate Tribunal (ITAT) held that every non-compliance with a notice u/s 142(1) gives a separate cause of action for levying penalty u/s 271(1)(b)....

Adjustment u/s 143(1) disallowing revenue expenditure claim u/s 11(1) was made without providing reasonable opportunity to assessee, violating second Proviso of Section...

Association of persons (AOP) - Consortium - Appellant No.1 is a member of AOP or not - There is no force in the contention of Appellant No.1 that due to absence of right...

Late payments towards EPF and ESI under section 36(1)(va) - Contribution made prior to filing of the return of income u/s. 139(1) - Addition by way of adjustment while...

Addition u/s 41(1) - long outstanding balances in sundry creditors accounts - AO made the additions, since the assessee has not shown any steps have been taken for...

Quick Updates: