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2012 (11) TMI 710 - AT - Income TaxAddition on account of interest payments to non genuine cash creditors - Held that:- Most of the repayments were made either during the periods when the assessment proceedings were going on or thereafter. In such circumstances, it was expected of the assessee to at least have the correct address at the time of repaying the amounts, especially when assessee had not filed any confirmation in respect of these deposits. Thus, majority of the addition is liable to be confirmed except where summons were served or where summons were not received as unserved - out of these two additions the assessee was given a relief of Rs.2.91 lakh in respect of unexplained credits and Rs.85,751/- in respect of interest thereon and balance addition was confirmed Addition u/s. 69B of the Income-tax Act - assessee is engaged in the cheque discounting business – Held that:- Transaction had been recorded on the next working day when the payment was made on earlier working day after the business hours - assessee had submitted the explanation which is rightly accepted by Ld. CIT(A) since the assessee had given the cash after the business hours or on Saturday and accordingly the transactions have been entered on the next working day. The explanation has been substantiated from various documents submitted by the assessee - addition deleted Addition made by estimating the commission income u/s. 145 of the Income-tax Act - assessee had shown the cash payment to various parties against cheque discounting - Assessing Officer was of the view that it is not possible for him to deduce accurate income and therefore on show-cause given to the assessee he rejected the books of account u/s 145(3) of the Act – Held that:- In addition to the specific addition made and to meet the ends of justice the AO made presumption that the assessee had understated commission income of such transaction and accordingly estimated the income of Rs.5 lakh over and above the commission declared by the assessee – CIT in his order by accepting the explanation of the assessee deleted the addition
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