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2012 (7) TMI 333 - AT - Income TaxAdhoc disallowances under the head ‘wages’ - assessee claimed that the difference was due to a computer error and passed a single entry of Rs.1,88,919, the amount of the discrepancy detected, with the narration ‘cash payment to labourers’ as on 31.3.2005. - assessee failed to explain a factual discrepancy of Rs.1,88,919 that has been detected in its books of account - Decided against the assessee. Disallowance u/s.40A(3) read with 6DD - lorry freight charges - being 20% of the payments made in cash exceeding Rs.20,000 each u/s.40A(3) of the Act - held that:- assessee was placed in exceptional circumstances to make cash payments to the extent of Rs.2,95,096 and the authorities below were not justified to invoke the provisions of section 40A(3) of the Act - Decided in favor of assessee. Addition towards not accounting contract receipts - Assessing Officer found that bills in respect of 6 parties were not accounted for in the books of accounts of the assessee – Held that:- Assessee has not been able to establish with any documentary proof that these contract receipts amounting to Rs. 5,29,919 as per bills unearthed and impounded in the course of survey were nothing but estimates as contended or to disprove Revenue’s finding that they were contract receipts not accounted for - assessee’s ground is dismissed. Addition on account of excess of assets over liabilities - Assessing Officer had examined the account extracts of the assessee in the books of ISKON Temple and clearly established that the assessee’s claim that an amount of Rs. 29,326 was due by it to ISKON was not backed by any material evidence or documentary proof – Held that:- Assessee has not brought on record any documentary evidence to contradict Revenue’s finding on this issue – Against assessee Addition as unexplained cash credit under section 68 of the Act - credits in the capital account of partners of the assessee firm - Held that:- While the identity of the creditors, i.e. the partners, is proved, the transactions remain unexplained in the hands of the firm and he was of the view that the credit worthiness and genuineness of the transaction was not proved in the absence of any plausible explanation - assessee has failed to discharge its burden to prove and establish with documentary evidence, the capacity of the partners to actually make such credits in their capital account and the genuineness of the credits therein, thereby justifying the findings of the authorities below to bring to tax under section 68 – Against assessee
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