Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 507 - AT - Income TaxAddition on account of Opening cash balance in books of accounts – During survey u/s 133A, neither the books of accounts nor the vouchers were made available - In course of assessment proceedings, the cash book and ledger and two Nandi files containing vouchers relating to previous assessment years are produced and the same was impounded – AO made addition on the basis of such opening cash – Held that:- As the receipts from business were deposited in another account and the same was also withdrawn as self- withdrawals. The opening cash balance cannot be said to be any sum found credited in the books of the assessee maintained for the previous year. Upheld the decision of CIT(A) in favour of assessee Addition on account of unexplained creditor u/s 68 - Assessee did not produce creditor, to satisfactorily explain the credit in his account – Held that:- The said sum in creditor’s account was already disallowed u/s 40(a)(ia), which was of labour charges paid to creditor. Therefore CIT(A) was justified in his conclusions, as sustaining the said disallowance would amount to making disallowance twice. Decision in favour of assessee Addition on account of outstanding amount towards expense - Books of account and other relevant materials were impounded during assessment proceeding by AO - AO has not allowed the assessee to take photocopies of the impounded books of account and other documents – Held that:- As the assessee was not in a position to furnish the name and complete addresses of the creditors. In the remand report, the AO is silent on this aspect except merely stating that the assessee failed either to furnish the full address of the persons. Therefore issue remand back to AO Disallowance in respect of cash payment of expenses exceed Rs.20,000/- AO invoking provisions of Sec.40A(3) disallowed 20% thereof in addition to the total income – Held that:- These expenses are in respect of labour charges which are already disallowed. Therefore making disallowance u/s 40A(3) of the Act would amount to double disallowance. Decision in favour of assessee Disallowance of certain expense on account of failure to produce relevant detail - The assessee could not furnish the full details viz., name and address of the persons to whom the payments of expenses were made - AO has not reported any specific finding as to whether the expenditure claimed is excessive, bogus or not related to the assessee business. Books of account were impounded and kept under his custody and copies of the same were not provided to the assessee. Therefore, assessee could not furnish the requisite details. Issue remand back to AO.
|