Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 1201 - AT - Income TaxAddition alleging short / incorrect accounting of stock - Held that:- The issue in dispute is squarely covered by the decision of ITAT, Hyderabad in assessee’s own case for AY 2009-10 wherein held the assessee is maintaining the stock of material on behalf of others and only charging fixed amount for this service, and as such, apparently, there is no need to admit the same in their books as stock in trade, he confirmed the same holding that the assessee did not specify how the balance figures are shown in the books of VSSC and what is the effect of this confirmation. This reasoning given by the CIT(A) cannot be accepted because VSSC has certified the stock under consideration belongs to it and in no way the ownership of the stock pertains to the assessee. Just because the stock is kept with the assessee the same cannot be treated as the stock of the assessee, as it belongs to a third party, viz. VSSC in this case. We agree with the assessee’s contentions on this issue and direct the Assessing Officer to delete the said addition. Addition u/s 14A - Held that:- the principle laid down by different High Courts are to the effect that unless assessee has earned exempt income in a particular FY, provisions of section 14A will not apply. In view of the aforesaid, we do not find any merit in the ground raised by the department. Accordingly, we dismiss the same by upholding the order of ld. CIT(A) on this issue. See case of Cheminvest Ltd., reported in (2015 (9) TMI 238 - DELHI HIGH COURT )
|