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2010 (2) TMI 727 - AT - Income TaxDisallowance - manufacturing and administrative expenses - There is no dispute to the fact that the assessee did not produce the relevant books of account and other documents as demanded by the Assessing Officer during the course of assessment proceedings on the ground that they were seized by the CBI - Merely because the accounts have been audited and the auditors pointed out no mistake cannot absolve the assessee from the onus cast on it. Further the search by CBI is a pointer towards some manipulation by the assessee somewhere - Held that: Addition made on estamation basis equal to Rs. 10 lakhs sustained. Income u/s 41(1) - Merely because the assessee has made a legal claim that no amount is payable by it to the party, the fact remains that in the Balance Sheet it appears as liability and the other party has filed a case for recovery of the amount - In the instant case there is neither write off of the amount by the assessee nor the other party has given up its claim. We, therefore, are of the opinion that the amount of Rs.13,31,981 cannot be added u/s. 41(1) of the Act - Appeal of the assessee is partly allowed
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