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2013 (7) TMI 6 - AT - Income TaxDisallowance of non-genuine brokerage expenses - Held that:- AO had made a specific finding that an abnormal amount of commission was claimed in the month of March coupled with various other discrepancies which is required to be met out by the assessee. Payment of commission by cheque and deduction of TDS alone cannot establish by itself that the expenditure is genuine. Therefore, in the interest of justice, we remit this issue back to the file of the learned CIT(A) for de novo consideration. Thus, this ground is allowed for statistical purpose. Addition made u/s 68 and disallowance of interest expenses - Held that:- CIT(A) rendered relief to the assessee by observing that the learned AO had given superficial reasons to treat the loan as unexplained which we find is not tenable. The learned AO had categorically mentioned that the assessee had not provided the correct address of the lenders to issue notice for summons. Therefore, in the interest of justice remit this issue also to the file of the CIT(A) for de novo consideration. Addition on Account of excess shortage - CIT(A) deleted addition - Held that:- It is pertinent to note that the books of account maintained by the assessee have not been rejected. No defect has also been pointed out by the AO with respect to the books of account. No discrepancies with regard to shortage affecting the yield were also pointed out by the AO. Thus addition made by the AO based on 2% shortage cannot be sustained. Addition u/s 69B for stock difference - CIT(A) deleted addition - Held that:- CIT(A) deleted the addition since the AO could not find any defect in the stock statement arrived at on the basis of physical verification. Further, AO had ignored the reconciliation statement for quantity difference submitted by the assessee. Thus it not necessary to interfere in the order of the CIT(A).
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