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2016 (7) TMI 1260 - AT - Income TaxAddition on unexplained creditors - addition of interest paid to the above creditors - Held that:- The authorities below should have followed the earlier order of the Tribunal in deciding the appeal instead of confirming the addition in the matter. Further, assessee filed sufficient evidences as noted above which clearly proved identity of the creditors, their credit worthiness and genuineness of the transaction in the matter. Therefore, addition would not be justified against the assessee. Thus, the assessee proved genuine receipt of credits from various creditors mentioned above, therefore, addition on account of unexplained credit is wholly unjustified. The interest paid thereon is also allowable deduction. - Decided in favour of assessee Disallowance of 1/5th of car expenses etc. - Held that:- Addition is excessive in nature. The assessee submitted before ld. CIT(Appeals) that there is possibility of personal use of car, therefore, disallowance in principle is justified. However, it is a fact that assessee has already disallowed ₹ 25,000/- on these expenses, therefore, considering this fact, the addition of ₹ 43,358/- is reduced and restricted to ₹ 10,000/- only. Therefore, modify the orders of authorities below and restrict the addition to ₹ 10,000/- on this issue as against addition of ₹ 43,358/-. These grounds are partly allowed.
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