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2013 (4) TMI 229 - AT - Income TaxUnexplained cash credit received from American Mannequin Co. - CIT(A) deleted the addition - Held that:- Nature and source of funds have been explained to the AO with documentary evidences, which have not been fully appreciated by the AO to arrive at a logical conclusion. Nothing on record to suggest that the impugned transaction of shares are sham or bogus and/or simple paper transactions, and amount to hawala transaction, therefore, the findings of the CIT(A) cannot be said to be erroneous and perverse. The case laws cited by the learned DR are of no help, as they revolve around issues of identity and credit worthiness of the parties, which are not the issue in the present case. In this view of the matter no reason to interfere in the order of the CIT(A) on this issue, which is upheld - against revenue. Disallowance made by the A. O. under section 43B - deduction on account of interest payment disallowed - CIT(A) deleted the addition - Held that:- On perusal of the Annexure and ledger account as on 31-03-2002 it reveals that the assessee had paid the accrued interest on its borrowings from GIIC which is a State Industrial Investment Corporation before the date of filing of its return of income which the learned AO failed to appreciate and by wrongly invoking the provision of section 43B made the additions. The CIT(A) on proper appreciation of the facts of the case as well as the provisions of section 43B had directed the AO to delete the addition so made by the AO. No justification to interfere with the findings of the CIT(A). In favour of assessee.
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