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2014 (4) TMI 28 - AT - Income TaxDeletion made on account of bogus liabilities – AO made the additions on the ground that these relate to opening balances whereas on the contrary the two parties have confirmed nil balance. - Held that:- From the order of the AO, it is clearly emerges that there was litigation between assessee and KLCI - there appears to be a confusion as to in whose accounts the cheques issued by the above persons were credited i.e. whether it was M/s Greentex Mining Co. or Kabini Mineral Co. - The assessee claims that there is intermixing of entries which has not been properly verified by the lower authorities - The assessee has not filed any paper book to demonstrate the actual position - the reluctance of KLCI in providing information is obvious - What type of disputes were there is neither looked into nor emerge from the record - the books of both proprietary concerns of the assessee are to be considered and reconciliation of accounts is to be carried out - both the creditors are genuine parties having business transactions with the assessee – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Revenue.
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