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2009 (7) TMI 876 - ITAT, AHMEDABADAdditions u/s 41(1) - deep freezer deposits - period of holding 5 to 10 years - The assessee after manufacturing ice cream is also marketing after appointing various dealers all over the region. For this, the assessee has purchased deep freezers for keeping ice cream and supplying the same to the dealers against deposits for deep freezers. The assessee treated this deep freezer deposits in the books of account as an asset and treated this as deep freezer deposits over all the years. - Held that:- provisions of section 41(1) of the Act cannot be applied to the facts of this case as the twin conditions as prescribed in section 41(1) the Act have not been satisfied, i.e., during the assessment year in question the assessee must have received some benefits by way of cessation or remission of liability and the amounts must have been allowed as deduction or allowance in respect of these expenditure or trading liability incurred by the assessee and that is not a case in the present fact. - the action of the Assessing Officer in treating the deep freezer deposits account at ₹ 11,60,000 as income of the assessee is against the provisions of the Act - Decided against the revenue.
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