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2016 (3) TMI 1072 - AT - Income TaxUnaccounted deposits in the three accounts of the assessee company in Federal Bank - Held that:- In view of the admission by the Id. AR as well as the fact the four hajj firms floated by the assessee company had no infrastructure of their own and they did not even had their own bank accounts, the income of the Hajj firms is to be assessed in the hands of the assessee company only. As regards the merits of the addition is concerned, the assessee 'company had produced the details of all the transactions pertaining to the three accounts maintained in Federal Bank Calicut along with the copy of cash book, Profit and Loss account and Balance sheet of the company. The assessee has further filed the detailed analysis of the transactions carried out in the aforesaid bank. The assessee had filed the copies of details of all the bank transactions, details of sales of Air ticket and expenses pertaining to Hajj and Umrah Services for relevant assessment year along with the statement of cash flow. The ld.CIT(A) has verified the details of the bank accounts and found no infirmity in the details given by the assessee company. The objection of the revenue that the reliance should solely be placed on the statement of Sh. M. Narayana Kumar is misplaced. The assessing officer went on a wrong premise and added the entire deposits appearing in the bank accounts without deducting the withdrawals made. It is a settled principle of law that only the real income of the assessee has to be taxed and not notional income. In any case, the assessee could not have been subjected to tax only on the deposits in the bank accounts. - Decided in favour of assessee
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