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2014 (8) TMI 807 - AT - Income TaxNon-genuine purchases Documentary evidences ignored Supplier declared as hawala dealer Held that - AO had made the addition as one of the suppliers was declared a hawala dealer by the VAT Department - it was a good starting point for making further investigation and take it to logical end - he left the job at initial point itself - Suspicion of highest degree cannot take place of evidence - He could have called for the details of the bank accounts of the suppliers to find out as whether there was any immediate cash withdrawal from their account - no such exercise was done - Transportation of good to the site is one of the deciding factor to be considered for resolving the issue - The FAA has given a finding of fact that part of the goods received by the assessee was forming part of closing stock - there is nothing in the order of the AO about the cash trail - proof of movement of goods is not in doubt thus the order of the FAA does not suffer from any legal infirmity and there are not sufficient evidence on file to endorse the view taken by the AO Decided against Revenue. Suppression of sales Amount credited in next year - Taxability on the basis of TDS u/s 198 Held that - Accounting Standard-9 (AS-9) envisages that the revenue from sale/service should be recognized as per the prescribed manner - the advance received by the assessee cannot be treated income and he had correctly shown the balance amount of Rs. 1.14 Crores for the AY-2010-11 - deduction of tax for the payment is one of the deciding facts for recognize the revenue of a particular year - But TDS in itself does not mean that the whole amount mentioned in it should be taxed in a particular year deduction of tax and completion of assessment are two different things while finalizing the tax liability of the assessee and AO is required to take all the facts and circumstances of the case not only the TDS certificate the order of the FAA with regard to the TDS does not suffer from legal infirmity relying upon Income-tax Officer Ward-4(3) Ahmedabad Versus Hans Road Carriers (P.) Ltd 2010 (8) TMI 756 - ITAT AHMEDABAD - the FAA had directed the AO to include Rs. 3.21 Lakhs being TDS on the advance of Rs. 1.41 Crores to be included as a part of the turnover in terms of section 198 Decided against Revenue.
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