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2012 (8) TMI 1073 - ITAT MUMBAIRejecting assessee’s claim of bad debt - Held that:- AO and stated that if the claim of bad debt is not allowed, it is a trade debt as loss of advance paid by the assessee during the course of business. A.R. could not specify as to what item, assessee proposed to purchase from the said party to whom advance was made. Further, there is no invoice or any correspondence to substantiate the contention of the assessee. In view of above, we do not find any merit in the contention of ld A.R. Hence, we uphold the order of ld CIT(A) and reject the ground Nos.1 & 2 taken by the assessee. Addition of interest received from Rajvaibhav Enterprises Pvt Ltd., based on AIR information - Held that:- Addition merely on the basis of AIR information and without bringing any evidence on record that the assessee has actually received the said interest of ₹ 2,66,916. It is not the case of the department that the said party was put to cross examination or the ledger account of the assessee in the books of account of the said party were given to the assessee and assessee was confronted thereon. We agree with ld A.R. that merely on the basis of AIR information and without bringing any evidence on record, it cannot be held that interest income has been received by the assessee from Rajvaibhav Enterprises (P) Ltd. Therefore, the said addition is not justified. Addition on account of low G.P. on estimate basis - Held that:- We observe that AO made this addition merely on the ground that gross profit of G.P. in the assessment year under consideration is low as compared to earlier assessment year gross profit. We observe that no defects have been pointed out in the books of account. No purchase or sales shown by the assessee have been disputed by the authorities below. It is a fact that merely G.P. has fallen in the assessment year under consideration, the addition is not justified.
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