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2011 (1) TMI 943 - HC - Income TaxAddition on account of fall in GP - Held that:- AO was not justified in rejecting the books of accounts under Section 145(3) of the Act by estimating the assessee’s turnover at Rs.1.20 crore instead of Rs.85,04,823/- as declared by the assessee - Based on this conclusion, the CIT(A) ordered for deletion of addition of Rs.34,95,177/- made by the AO - Decided in favour of assessee. Unexplained unsecured loans - Held that:- As the assessee has furnished sufficient documents to prove not only the identity of the loan creditors but also the creditworthiness and genuineness of these transactions. The source is also explained by the Assessee in the hands of the loan creditors because loans are given by these persons to the assessee out of refund received by those loan creditors from one Shri Satish Jindal - Decided in favour of assesse. Unexplained sundry creditors - the assessee failed to furnish the confirmation from the creditor, i.e., M/s.Carborundrum Universal Ltd. before the AO however, relevant record in this regard was produced by the assessee before the CIT(A) - Held that:- From the orders of the CIT(A) and that of ITAT, it transpires, as a matter of fact, that the assessee had given a credit of this amount in the books on account of purchase of goods from M/s.Carborundrum Universal Ltd., but the goods were in transit and hence the same was not debited in the P&L Account by the assessee - The CIT(A) was satisfied with the record produced by the assessee in this regard including that of accounts of M/s.Carborundrum Universal Ltd., stock in transit account, copies of bills and evidence of payments of Rs.1,55,203/- in the subsequent year and also confirmation certification from M/s.Carborundrum Universal Ltd - Decided in favour of assessee.
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