Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 57 - GUJARAT HIGH COURTDisallowance under Section 40A(2)(b) of the Income Tax Act – Held that:- Assessing Officer has not pointed out the payment made to the specified persons is excessive and unreasonable - No comparative figure was given by the Assessing Officer in the assessment order - there was no occasion to invoke Section 40A(2)(b) of the Act - Assessing Officer had made only adhoc disallowance under the said provision without pointing out how the payments made to the specified persons were excessive or unreasonable – In favor of assessee Addition on account of unexplained creditors under Section 41(1) of the Income Tax Act – Held that:- Even after the remand of the proceedings before the Assessing Officer, he was unable to bring any material on record to show that the liability had ceased - by virtue of limitation, the liability cannot be said to have ceased. The Assessing Officer was not able to establish that liability had ceased or that the creditors were bogus. Even if the creditors were not genuine, addition could not be made under the year in consideration - even though the amount initially was not taxable in the year of receipt, the amount changed its character when it became the assessee's own money because of limitation or by any such statutory or contractual right – addition deleted
|