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2014 (1) TMI 1624 - AT - Income TaxUndisclosed income for block period - Held that:- A.O. made these additions on the basis of statement recorded u/s.132(4) of the IT Act of Shri Mahendra H Shah who admitted in his statement dated 09.12.1999 that he was in business of giving cheque to anyone against receiving cash after deducting his commission. He did not make any purchase of scrap from any ship breakers. He had given only loan entries or issued cheque after receiving cash, which has been retracted by Shri Mahendra H Shah before the DDIT, Bhavnagar within few days from the date of search. No material has been placed before them indicating that the concern managed by Shri Mahendra H Shah and his associates had issued cheque by way of loan to the tax payer in lieu of cash. The ld. A.O. made addition in suspicion without bringing any material on record to show that assessee had given cash and received back the cheque and had been channelized the unaccounted income through accommodation entry. The assessee had shown these loans in the regular books of account paid the interest on it and deducted TDS accordingly. Therefore, we do not hesitate to reverse the order of the CIT(A). - Decided in favour of assessee.
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