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2013 (11) TMI 527 - HC - Income TaxAddition in respect of bogus purchase of JCB – Held that:- Assessee in his return submission dated 6.11.2009 had explained that the purchase of 2 JCB machines were made from Yantraman Automac Pvt.Ltd., Baroda and both these purchases were on hypothecation with Centurion Bank of Punjab. The purchase bills also reflected hypothecation with the Bank - Books of accounts were audited under section 44AB and the Tax Audit Report under the said provision had been duly furnished before the Assessing Officer, which was also evident from the assessment order - Tax Auditor did not point out any discrepancy in the entire report. Not only the purchase bills filed by the assessee reflected such hypothecation with the Bank but the repayment schedule also was furnished before the Assessing Officer – Decided against the Revenue. Addition on account of capital introduced by the partners – Addition on account of credited in the bank account – Both these additions in view of the no books of account produced before the Assessing Officer – Held that:- In respect of capital introduced by the partners amounting to Rs.7,60,000/-, the assessee has furnished the necessary evidence which is evident from the written submissions dated 6.11.2009 which is reproduced by the AO in the assessment order – Relying upon the judgment of the Hon’ble Gujarat High Court in the case of Pankaj Dyestuff Industries [2005 (7) TMI 601 - GUJARAT HIGH COURT], deleted the addition – Decided against the Revenue. Deposit in bank account of Rs.8,90,000/- stood explained as capital introduced by the partners. The receipt of contract work amounting to Rs.13,73,671/- is also stood explained as AO himself estimated profit at the rate of 8% on this civil contract receipt of Rs.13,73,671/-- Ld. Counsel of the assessee explained that Rs.2,34,329/- is out of opening balance of Rs.10,64,074/- - Books of accounts are audited - Deposit of Rs.24,98,000/- is stood fully explained – Decided against the Revenue.
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