Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 727 - AT - Income TaxAddition u/s 41(1) on account of cessation of liability – Addition of sum of Rs.35,02,308/- - The assessee is in the business of Cine Laisoning/Co-ordination, and had in the course of its regular business incurred liabilities to the extent of the impugned sum in an earlier year – Held that:- Apart from the statement of the liability in her accounts, the assessee has furnished no positive material to establish the subsistence of the liability as at the year-end (31.03.2008) – As per Dy. CIT vs. Hotel Excelsior Ltd. [2010 (12) TMI 1080 - ITAT DELHI] there could be no cessation of liability solely on the ground that it is over three years old - Under the circumstances, it is fit and proper that the matter is restored back to the file of the assessing authority to decide the matter by issuing definite findings of fact. Addition u/s 68 in respect of unexplained cash credit – Held that:- Addition is not toward unexplained cash credits, but only toward unexplained source of the cash deposits in bank (Rs.44.30 lacs), stated to be sourced in part by way of receipt back of advances from various parties, i.e., at Rs.17.85 lacs - It would only be fair and in the interest of justice to allow assessee an opportunity to plead its case before the ld. CIT(A) qua this ground. Disallowance of expenditure in respect of expenses pertaining to electricity, professional fee, staff salary, etc – Held that:- This is not a case of a temporary lull in the business. The same stands discontinued since f.y. 2003-04, with the assessee having not commenced any new project since. In fact, by own admission, she could not do so as she had admittedly not settled her dues to several persons in relation to her last project - In fact, it was found that she to be having even no resources for being able to undertake any such project. The assessee, as it would appear, has been engaging herself in laisoning/coordination business. The film production business having been discontinued for the past several years, with no signs of revival - Assessee's claim for business expenditure does not satisfy the test of s. 37(1) r.w.s. 28 of the Act, and stands rightly disallowed – Decided against the Assessee.
|