Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (12) TMI 851 - AT - Income TaxNon Reconciliation of professional fee received with TDS certificates - assessee contended that the entire fees received by him are by cheques, which may come from the clients or from instructing advocates or Chartered Accountants in case they have collected the amounts from the clients; therefore, it is not practically possible for him to give a detailed party wise breakup of fees received. - Held that:- in absence of any contrary material brought by the revenue authorities that the assessee has received amount more than the professional fees than what has been declared by him, no addition should have been made. It is also a fact that the professional income declared by the assessee far exceeds the professional fees as per AIR information. There may be so many reasons such as low deduction of tax, non-deduction of tax, deduction on account of reimbursement of expenses etc., for which the figure as per the AIR may not tally with the income declared by the assessee on account of professional fees from various clients. - addition of Rs.47,37,000/- deleted - Decided in favor of assessee. Unexplained investment - investment in mutual funds - held that:- As per the certificate issued by the mutual funds, the name of assessee appears as second holder - held that:- Assessing Officer has already informed the Assessing Officer having jurisdiction of the above two persons (first holder) as per his letter dated 17.11.2009 to take necessary action at their end. Therefore, in our considered opinion, the addition is uncalled for on this account in the hands of the assessee. In this view of the matter, we set aside the order of the CIT(A) and direct the Assessing Officer to delete the addition of Rs.75 lacs. - Decided in favor of assessee. Disallowance u/s 14A / Rule 8D - expenses related to exempted income - Dividend income of Rs.6.39 crores - the expenditure disallowed by the Assessing Officer at Rs.50,000/- appears to be very reasonable considering the volume of dividend income. In this view of the matter, we do not find any infirmity in the order of the CIT(A) sustaining the disallowance of Rs.50,000/- made by the Assessing Officer.
|