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2014 (3) TMI 107 - AT - Income TaxRejection of books of accounts Held that:- There was a discrepancy in respect of accounts of two parties i.e., M/s. Soubhik Exports and M/s. PKS Ltd. assessee contended that the discrepancies noticed in respect of these two parties cannot be generalised so as to reject the books of account - The AO caused necessary enquiry and found that all the sundry creditors' accounts are in correct position and there is no discrepancy in those accounts - it is appropriate to accept the book result in respect of transactions reflected in the books of account and the AO has to estimate the income only in respect of other two parties - The CIT(A) is justified in holding that the AO has not pointed out any discrepancy in maintenance of accounts with respect of the sale of maize and also accounts submitted in respect of other transactions thus, rejection of books of account is not warranted in the case Decided against Revenue. Deletion of addition of proportionate business expenses Held that:- The AO disallowed expenses in the Profit and Loss A/c in proportion to the brokerage received as the books of account of the assessee were rejected and disallowed expenses relating to the brokerage business forming individual part of the Profit and Loss A/c prepared by the assessee - books of account of the assessee cannot be rejected thus, there is no question of disallowance of proportionate business expenses Decided against Revenue. Deletion of addition from undisclosed contract Held that:- The assessee not brought anything on record to suggest that M/s. Mulkanoor Cooperative Credit Society itself sold rice to M/s. Emmsons International Ltd. and assessee is only receiving commission on it - In the absence of positive material to suggest that the rice has been sold by Mulkanoor Cooperative Society directly to M/s. Emmsons International Ltd. - the TDS certificate will be considered as genuine and the same has to be taxed as mentioned in the TDS certificate as income of the assessee Decided in favour of Revenue. Disallowance of depreciation on vehicles Held that:- The vehicle is in the name of the partner and the vehicle was used for the purpose of business of the assessee and a partnership cannot be said to be separate from partners and the vehicle is in the name of partner and if it has appeared in the Balance Sheet of the assessee, depreciation on that asset is to be allowed Decided against Revenue.
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