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2012 (11) TMI 219 - ITAT, CHANDIGARHAddition on account of expenditure under the head Discount - No Books of account and supporting documents had been produced by the assessee during the assessment proceedings – Held that:- Discount is an expenditure, which can either be reduced from sales or it can be charged to Profit & Loss Account - Evidence and details filed by the assessee, has not been confronted to the AO, within the meaning of Rule 46A of the Income Tax Rules, 1962 - issue is restored to the file of the AO, to adjudicate the issue afresh, as per law, after affording reasonable opportunity to the assessee - ground of appeal of the revenue is allowed for statistical purposes. Addition made by the AO in trade account - Held that:- No books of account and supporting details were produced – AO applied 11% GP and made the impugned addition - Held that:- end of justice would be served,if GP is taken at 10% - ground of appeal of the revenue is partly allowed. Addition as income from Undisclosed sources – Held that:- AO has made addition on certain misconception, which needs to be reconciled, at his level. Therefore, the issue is restored back to AO to adjudicate the issue properly, in accordance with provisions of law and in terms of established accounting norms - grounds of appeal of the revenue are allowed for statistical purposes. Assessee's appeal for assessment year 2006-07 Disallowance of Interest – Held that:- Since these advances are for non-business activity and no supporting evidence has been furnished - interest @ 12% on these advances making addition of Rs.1,26,000 is disallowed - AO should afford reasonable and proper opportunity to the assessee, while adjudicating the issue afresh and the assessee is also directed to render necessary cooperation in the matter - ground of appeal of the assessee is allowed for statistical purposes.
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