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2010 (4) TMI 98 - HC - Income TaxPower of revision section 263 disallowance of interest on the ground of diversion of funds / loan addition on account of excess / shortage of stock deduction u/s 80HHC held that the issue relating to section 80HHC has been decided in the matters of Ram Honda Power Equipments [2008 -TMI - 2891 - HIGH COURT, DELHI] ITAT had allowed the interest after observing that the business relationship between the said assessee and the parties was not disputed or doubted and the fact that the advances had been made in the course of business was borne out from the record Tribunal came to the conclusion that no further addition was called for since the assessee had also disclosed a higher valuation of the closing stock and thereby higher profit when there was no difference in the quantitative tally - Tribunal specifically held that it was wrong on the part of the Commissioner to observe that purchase worth Rs1,13,33,251/- was neither made by the assessee nor declared by it. It was specifically mentioned that the assessee had shown sales to the extent of Rs.36,41,22,261.98 in the Profit and Loss Account for the period ended on 31.03.1998 and the details of the sales also clearly included the sale of silver worth Rs.1,41,77,590/-. Consequently, the Tribunal held that the observation of the Commissioner that there was no sale of the purchased silver in the year in question was without any basis decided in favour of assessee
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