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2011 (12) TMI 345 - AT - Income TaxAddition - Survey party recorded two important findings of fact that-(i) physical stock found was in excess of book stock by an amount of Rs. 1, 44, 25, 183/-; and (ii) cash found was short of the cash as per cash book by an amount of Rs. 80, 31, 100 - the assessee has taken up shifting stands in various times and therefore there is reason to come to the conclusion that the assessee tried to foreclose enquiry by making confession at the time of survey - statement u/s 133A is not on oath and the section does not provide that it can be used for the purpose of the Act - The officers have been advised that there should be focus and concentration on collection of evidence of income which leads to information on what has not been disclosed or what is not likely to be disclosed before the revenue - assessee has displayed low tax morality that cannot be a ground for sustaining an addition which inference is otherwise not deductible under the law - Decided in favor of the assessee Regarding addition u/s 68 - it is mentioned that ostensibly the addition made by invoking the provision contained in section 41(1) as the provision contained in section 68 is not applicable for the simple reason that these credits were not made for the first time in this year in the books of account - The facts submitted by the ld. counsel regarding the credits being old and their not being written off in the books of account stand undisputed - the provision contained in section 41(1) is also not applicable - Decided in favor of the assessee Regarding addition of Rs. 2, 17, 11, 006 on account of employees contributions to provident fund and the ESI - during the year the assessee had inter-alia deducted an amount of Rs. 2, 17, 11, 006/- from the salaries paid to the employees. However the amounts were not credited to respective accounts of the employees before the due date defined u/s 36(1)(va) - Supreme Court in the case of Alom Extrusions Ltd (2009 (11) TMI 27 - SUPREME COURT) - Held that if the amount is not deductible u/s 36(1)(va) it is deductible u/s 43B - Decided in favor of the assessee Regarding addition of Rs. 20.00 in respect of diversion of interest-bearing funds to its subsidiary company - the assessee advanced monies to the sister concern free of interest. The monies were advanced from a current account in which only sales proceeds were credited - The claim of the assessee is that such advances arising out of this account had no nexus with the borrowings which were credited in another account - the main account and the account from which advances have been made will have to be seen cumulatively for arriving at a decision as to whether any own money was available for making advances as aforesaid - As no attempt has been made to find out the nexus between borrowing and lending - Decided in favor of the assessee by way of remand to AO
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