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2014 (11) TMI 323 - ALLAHABAD HIGH COURTUnexplained credits u/s 68 - Whether the Tribunal erred in giving relief on account of advances from customers to be refunded which were basically unexplained credits which could not be explained by the assessee as per the provisions/language of Section 68 – Held that:- The CIT (A) observed, after duly considering the accounts, that the amount of ₹ 1.75 crores had been credited in the account of the assessee in earlier years and was not a fresh credit shown for AY 2002-03 – the Tribunal is correct in the view which has been taken because Section 68 of the Act permits an addition to be made where any sum is found credited in the books of account of the assessee for that year - Section 68 of the Act was not attracted – no substantial question of law arises for consideration – Decided against revenue. Deletion of interest chargeable on delayed payments - Whether the Tribunal erred in deleting the interest chargeable from customers when it is clear that assessee had been charging interest on delayed payments and did not declare it under the head income from other sources – Held that:- The addition was made purely on a notional basis, was deleted by the FAA - The Tribunal has also noted that the AO made an addition only on a notional basis - the AO had presumed that the assessee had earned the interest income whereas, the assessee had not received the interest income from its customers, nor was there a right to receive such income as per the accounting policy followed by the assessee – the order of the Tribunal is upheld – Decided against revenue.
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