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2019 (2) TMI 1320 - ITAT MUMBAIUnexplained expenditure u/s 69C - bogus purchases - addition towards estimated profit from the project @7% on total expenditure incurred for the year and debited to the P&L Account - HELD THAT:- There is no error in the findings recorded by the CIT(A) while scaling down addition made by the AO towards alleged bogus purchases and restricting 20% profit on such alleged bogus purchases. Hence, we are inclined to uphold the findings of CIT(A) and reject ground taken by the revenue. See COMMISSIONER OF INCOME-TAX-I VERSUS SIMIT P SHETH [2013 (10) TMI 1028 - GUJARAT HIGH COURT] Disallowance of interest paid on unsecured loan and excluded from work-in-progress - AO has excluded interest paid on unsecured loan on the ground that the total unsecured loan on which interest has been paid, has been treated as unexplained cash credit u/s 68 of and also consequent interest expenditure is reduced from work-in-progress - CIT(A) deleted addition - HELD THAT:- This is a recurring issue which is emanating from AY 2009-10. AO, initially made addition towards unsecured loan taken from certain parties u/s 68. CIT(A) has deleted addition made by the AO on the basis of additional evidence filed by the assessee towards unsecured loan taken from 23 parties and confirmed unsecured loan taken from 12 parties. CIT(A) also directed the AO to work out interest components of genuine loans as well as loans which were confirmed has unexplained credits. CIT(A) has, by following his predecessor’s order, directed the AO to examine the claim of the assessee in light of additional evidence and also keeping in view findings recorded by the CIT(A) for AY 2009-10. Revenue has not challenged the findings of CIT(A) in deleting addition made by the AO towards unexplained loan for AY 2009-10. Since the issue is recurring from AY 2009-10 and which has a cascading effect on addition made by the AO towards interest disallowance for the year under consideration, we find that there is no error in the findings recorded by the Ld.CIT(A) and directing the AO to examine the claim of the assessee in the light of evidence filed by the assessee and also keeping in mind the findings recorded by the Ld.CIT(A) for AY 2009-10. - Decided against revenue
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