Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (5) TMI 330 - ITAT DELHIAddition u/s 69C - unaccounted business expenses not debited in P & L Account - HELD THAT:- Considering the nature of business of assessee and that no evidence has been brought on record by the A.O. of incurring all these expenses, the estimate made by the A.O. of ₹ 10 lakhs expenditure is wholly unjustified. It is a fact that assessee has not claimed any expenditure of routine business expenses, electricity expenses, fuel expenses which are necessary for running of the business. We restrict the addition to ₹ 3 lakhs as against ₹ 10 lakhs made by the A.O. The Orders of the authorities below are therefore modified to that extent and A.O. shall make addition of ₹ 3 lakhs only. Alternate claim of assessee before the Ld. CIT(A) with regard to claim of depreciation which is statutory in nature. A.O. has noted the details of the asset and addition made to the asset in assessment year under appeal. The balance-sheet is before A.O. Therefore, it being the statutory deduction in nature, A.O. is directed to allow depreciation to the assessee as per Law, by giving reasonable, sufficient opportunity of being heard to the assessee. Assessee may produce other evidences before A.O, if necessary or called for by the A.O. on this issue. With these directions Ground No.1 of the appeal of the Assessee is partly allowed. Unexplained credit shown as addition to assessee’s capital account in the proprietary of M/s. Rhea Distribution Co. - cash deposited in the bank account and capital account have not been explained - surrender as additional income - HELD THAT:- Since surrender have been made in earlier year as well as in subsequent year of the amounts in question and taxes have been paid and the amount which was surrendered in earlier year have been realized in assessment year under appeal, therefore, same would not be taxable in assessment year under appeal. This reason alone is sufficient to delete the addition against the assessee. Documentary evidences on record and explanation of assessee, we do not find any justification to sustain any addition against the assessee. We set aside the Orders of the authorities below and delete the entire addition. Ground No.2 of the appeal of assessee is allowed.
|