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2012 (9) TMI 696 - AT - Income TaxCapital introduced by the partners added u/s.68 - CIT(A) deleted it - Held that:- CIT (A) has given a finding that the capital was brought by cheques, both the partners were assessed to tax and the assessee has discharged the primary onus in respect of such amount shown in the capital account. The Revenue has not been in a position to controvert the findings of CIT (A) nor could it bring any material to the contrary on record. In view of these facts no interference is called to the order of CIT (A). Since the ground of addition of capital of Rs.9.5 lacs is deleted - in favour of assessee. Addition made on account of booking deposit u/s. 68 - CIT(A) deleted it - Held that:- As during the course of appellate proceedings before CIT (A) the copies of registered sale deeds were filed and the same were admitted as additional evidence. CIT (A) has given a finding that the A.O. has not brought any material on record to show that the assessee has siphoned off the booking deposits. A. O. had made addition for the sole reason that no confirmatory letters were filed and some booking deposits were received in cash. Before CIT (A) the copy of registered sale deed showing names, addresses, attested photographs, signatures etc., of the members were filed which proves the identity and genuineness of the depositors - in favour of assessee. Disallowance of non-agricultural use conversion Charges - payment maid after the year end and was paid by the Seller Trust - CIT(A) allowed it - Held that:- CIT (A) has given a finding that assessee maintains its books on mercantile basis which obliges it to make provision for all known liabilities, the expenses have been incurred wholly for the purpose of business and the full sale price has been offered to tax and as per the development agreement the assessee is entitled to deduction. These facts have not been controverted by the Revenue nor it has brought on record any material to the contrary - in favour of assessee. Disallowance of interest paid to partners - Held that:- Since the ground of addition of capital of Rs.9.5 lacs is deleted, the disallowance with respect to interest on the capital also does not survive - in favour of assessee. Disallowance on account of Puran expenses (land filling) - Held that:- These expenses were estimated @ Rs.150/- per sq. yd. CIT (A) has given a finding that the provision for puran expenses is ascertained liability estimated by assessee and has to be allowed as deduction prorata in respect of plots sold as the gross sale price has been credited and offered to tax. Considering all the facts, CIT (A) has upheld the addition of 15% i.e. of Rs.1,63,832/-. The Revenue could not bring any material to controvert the findings of CIT (A) - in favour of assessee.
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