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2012 (7) TMI 390 - AT - Income TaxAddition under section 68 of the Act - alleged that assessee was not able to produce creditor confirmation - Assessing Officer, in the assessment order allowed set off of this addition against business loss and reduced the business loss – Held that:- Assessing Officer made addition under section 68 as unexplained cash credits though the said credits are only trade credits and that too most of them are opening balances of the previous year - lower authorities should have considered these balances in creditors accounts as income under section 41 and not as unexplained cash credits under section 68 - since the balances in creditors accounts are income falling under section 41(1), the set off of this income against business loss allowed by the Assessing Officer in the assessment order passed under section 143(3) is correct - appeal of the assessee is allowed
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