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2014 (2) TMI 430 - AT - Income TaxDeletion made on account of protective basis Held that:- The commission income has already been estimated by him thus, there is absolutely no justification in estimating the same amount again as business receipts of the assessee, and the action of the AO is just a matter of conjecture and surmises and deleted entire addition - The assessee is merely receiving commission income on booking of trucks from its clients and the freight payments were made by the clients to the truck owners and that the commission income has already been estimated by the Revenue, could not be controverted by Revenue thus, the same amount could not be taxed as business receipts in the hands of the assessee thus, there is no mistake in the order of the CIT(A) in deleting the addition on the issue Decided against Revenue. Deletion made on account of low household expenses Held that:- The CIT(A) has recorded that the assessee is living a simple life in village and did not have any car or membership of club and has shown withdrawal for family of five members in the accounting year 2004-2005, which were sufficient for meeting household expenses - there is no justification for making any addition on account of low household expenses Decided against Revenue. Estimation of commission income Held that:- The CIT(A) has passed a well reasoned speaking order on the issue - the assessee receives common income from the truck owners, but the assessee was not able to furnish any details about the owners' names and addresses - there is no way to find out the exact amount of commission earned by the assessee - the estimate of commission income of the assessee at Rs.10,00,000/- instead of Rs.6,19,625/- as shown by the assessee could not be said to be arbitrary Decided against Assessee. Deletion made on account of unexplained investment Held that:- The CIT(A) has recorded that no addition on this account is called for since the investment in trucks is duly reflected in the accounts of two ladies as also the income - there is no justification in making the addition in the hands of the assessee - The two ladies were existing income tax assesses, and there is no material brought on record to justify the addition made in the hands of the assessee Decided against Revenue. Deletion made u/s 44AE of the Act Held that:- The addition made by estimating the income from trucks under section 44AE of the Act was deleted by the CIT(A) on the ground that the trucks did not belong to the assessee, but belonged to two ladies - income from the trucks could not be considered in the hands of the assessee - the trucks were reflected in the accounts of the two ladies, who were existing income tax assesses - the income from the trucks in question could not be assessed in the hands of the assessee Decided against Revenue.
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