Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 786 - AT - Income TaxRejection of book result as per section 145(3) of the Act – Survey u/s 133A of the Act – Held that:- The books of account maintained without proper supporting evidence - Assessee contended that no specific defect has been pointed out by the AO before rejecting the book result - After considering the factual position of the survey as well as discrepancy found during the course of survey in impounded book and cash book maintained manually and computerized, the AO was right in applying Section 145 of the IT Act for rejection of book result – Decided against Assessee. Addition made on account of unexplained expenditure – Violation of section 194J of the Act – Held that:- CIT(A) was of the view that when assessee itself surrendered the income of Rs.13,62,259/-, the assessing officer was quite justified in making the addition by accepting the income voluntarily surrendered by assessee - when income is voluntarily surrendered during the course of assessment proceedings, assessee cannot contest said addition by filing appeal - for violation of TDS provisions separate addition is already made to the income of the assessee and apart from that there is no other cogent evidence which necessitates lump sum addition - The assessee made the disclosure voluntary and AO had not brought on record any evidence for estimating income at Rs.20,00,000/-. The difference into cash book worked out to Rs.13,62,259/- thus, the CIT(A) was right in upholding the addition of Rs.13,62,259 – Decided against Assessee. Disallowance u/s 40(a)(ia) of the Act – Legal and professional expenses, office rent and commission to others - Held that:- CIT(A) held that the assessee could not give any reasons as to why no TDS has been made from the payment of legal and professional fees, office rent and commission to others - As no TDS is made from the expenditure, provisions of Sec 40a(i)(a) of the Act is directly applicable - the word payable used in the section does not at all mean that there should be any outstanding amount at the end of the year & there is no legislative intent to disallow only the outstanding amount - The assessee had not deducted TDS on above amount, but had claimed as expenditure - As per Section 40(a)(ia), this expenditure is not allowable - The CIT(A) examined the issue thoroughly and confirmed the addition - the income has not been estimated u/s. 144 but determined after detailed scrutiny of the impounded documents as well as statement of the partner – Decided against Assessee. Disallowance u/s 40A(3) of the Act – Disallowance on account of donation - Held that:- CIT(A) held that the assessee could not explain the reasons to make cash payments - the AO scrutinized the impounded documents and considered the statement of the partner and assessed the income on the basis of scrutiny of the impounded documents – Decided against Assessee. Addition on account of various expenses – Held that:- The CIT(A) had restricted this addition on the basis of no quantification made by the AO and not supported by voucher and cash payments made and also personal use – the findings of the CIT(A) also confirmed as the reasonable addition – Decided against Assessee. Deletion made - Unexplained introduction of cash and inflation of expenditure – Held that:- The assessee had already shown cash balance of Rs.45,27,670/- in the audited balance sheet as on 31.03.2005 as against cash balance found as on 31.03.2005 in manual cash book at Rs.3,99,493/- which is lesser than cash disclosed in the balance sheet - These entries undisputedly pertained to A.Y. 05-06 - there is no basis to make any addition in the year under consideration - the CIT(A) has given relief on the basis of submission made by the assessee - since the entries pertained to A.Y. 05-06, no addition could have been made in A.Y. 06- 07 - it deserves to be deleted – Decided against Revenue.
|