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2010 (5) TMI 528 - AT - Income TaxSurvey - Addition - Unexplained income - The reconciliation filed by the assessee before the Assessing Officer could not be verified with the factual position as on the date of survey - The physical stock inventory taken partly by physical counting and partly on the basis of details given by the branches cannot be said to be a correct method of taking physical stock during the survey - assessee has explained each and every item of difference by reconciliation - Merely on the basis that at the time of survey, some differences were found in stock that does not mean that there will be an automatic addition on account of differences - assessee has reconciled the differences with reasons and the revenue authorities did not point out anything contrary that how the reconciliation done by the assessee was incorrect Regarding cash credit - The assessee filed explanation with evidence, under that circumstance the revenue authorities have to go through those evidences and record the reasons why they are not accepting the explanation filed by the assessee - There is no finding that the cash balance shown in the cash book was not with the assessee or the cash balances were used by those concerns for some other purpose - Under the circumstance such evidence cannot be rejected merely on the basis of presumption - addition deleted.
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