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2012 (8) TMI 126 - AT - Income TaxAddition to income - on account of long term capital gains u/s 60C, interest on deposit, low house hold expenses and on account of gross profit - Held that:- After calling a remand report, the CIT(A) recorded his own finding to the effect that cost of acquisition and improvement of property sold by the assessee was Rs. 20,28,091/- as per the balance sheet of the assessee for financial year 2001-02 and onwards and that assessee had also invested Rs. 11.60 lakhs in REC Bond u/s 54EC, accordingly, the taxable capital gain works out to be nil. The finding recorded by CIT(A) has not been controverted by Department by bringing any positive material on record. No infirmity in the order of CIT(A) for deleting the addition made under the head “capital gains”. Addition on account of notional interest income which was neither accrued to assessee nor received by the assessee - As during the year the assessee has not incurred any interest expenditure, thus, there is no justification for making any addition on account of notional interest - action of the CIT(A) for deleting the addition made on account of notional interest income is thus warranted. Trading addition on account of closing stock shown in the balance sheet - CIT(A) after verification of various bills of future purchase, sales etc., recorded a finding to the effect that in the trading account, the assessee had just debited cost of sales , therefore, there is nothing wrong in showing closing stock directly in the balance sheet - CIT(A) also found that the closing stock of Future Urad amounting to Rs. 1,53,89,619/- in the Balance Sheet and in the Trading Account cost of future purchases is debited only to the extent of future sales. Hence question of showing Closing Stock in Trading Account does not arises - against Revenue.
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