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2012 (9) TMI 427 - AT - Income TaxAddition on account by applying the GP rate on assumed turnover – Assesse is in business of plying of trucks – Assessee has sold 7 and acquired 4 during the F.Y - AO apply GP rate on the basis that, assessee has transferred the vehicles in question on paper only as a colourable device to avail Sec. 44AE – Held that:- During search proceedings no incriminating evidence were found by the department to suggest that the vehicles even after the sale thereof in fact belonged to the assessee and that the assessee owned them as benami and was actually the owner of the more than 10 trucks in any of the relevant assessment years. Sale proceeds from vehicles were recorded in the bank account and the value of the block of assets was reduced by the said amount. If AO has applied the GP rate, he has also to allow the depreciation thereafter and by doing so, the income becomes lower than the returned income of the assessee. Decision in favour of assessee. Addition on account of unexplained expenditure - Addition was made on basis of some entries written by pencil on the loose paper found during search – Held that:- In the absence of any evidence before us to controvert the findings given by the CIT(A), hold that no interference is called for in the order of the CIT(A) on this issue. Appeal decides in favour of assessee Addition on account of unexplained expenditure u/s 69C – Addition on the basis of some seized loose paper found during search - On which some petty cash advances written on different dates given to persons – Held that:- As the entries mentioned in the loose paper tallies with the regular books of accounts of the assessee, there remains no valid reason for making any addition under section 69C. Decision in favour of assessee
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