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2012 (5) TMI 304 - AT - Income TaxMethod of accounting - Assessing Officer observed in his order that that the assessee has not shown work-in-progress with profit and loss Account for the relevant previous year ended with 31.03.2004 - Held that:- The choice of the method of accounting lies with the assessee - the accounting policy consistently followed by the assessee wherein all the income and expenses were wholly accounted for and offered as such in the profit and loss account as and when it was received or incurred, there arises no work-in-progress with relation to expenses incurred on the on-going projects as the whole is offered as income/expenses - Matter remanded back. Regarding addition u/s 69 - bogus purchase - transactions were in remote areas where proper banking facilities and trading channels were not present. - assessee has transferred the amounts from his accounts with UCO Bank,Barakka Branch to the account of Mr. S. Das with the same Branch - The black wire purchase details/quantity were also mentioned. It clearly establishes that this money from the assessee's account went to Mr. S. Das who acted as an agent for the assessee in procuring black wire from the local market which has been sufficiently explained to the satisfaction of the authorities. - Decided in favor of assessee. Regarding retention money - Supreme Court in the case of National Thermal Power Co. Ltd. vs. CIT (1996 - TMI - 5626 - SUPREME Court - Income Tax) which permits the Tribunal to admit the additional ground as it does not require any investigation of facts and it can be adjudicated upon - Appeal is allowed by way of remand to AO
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