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2014 (11) TMI 524 - AT - Income TaxAddition made on estimation of profit – Held that:- CIT(A) rightly was of the view that most of expenses are in nature of routine business expenses - The expenses include expenses incurred on audit fees, bank charges, depreciation, rent, salary, vehicle, telephone etc. Audit fees is required to be incurred as the gross receipts of the appellant exceeds ₹ 40.00 lacs - the probability of incurring expenses for non-business purpose cannot be ruled out - AO had considered the gross profit shown by the Assessee as the net profit and thereby disallowed the entire indirect expenses - CIT(A) after considering the submissions of the Assessee considered 8% of the receipts shown by the Assessee to be the gross profit which in our view seems to be reasonable - no material has been placed on record by the Revenue to controvert the findings of CIT(A) – there is no reason to interfere with the order of CIT(A) – Decided against revenue. Deletion of addition u/s 68 r.w.s. 41(1) – Held that:- AO on the basis of examination of the return of income of only the 3 creditors and on noticing that the name of Assessee was not reflected by them as debtor, considered the entire amount reflected under the head sundry creditors by the Assessee which also included various other persons, as the income of the Assessee – but, CIT(A) on the basis of the examination of only 5 persons has deleted the entire addition - there is no finding of CIT(A) with respect to the non reflection of the Assessee as debtor by the 3 creditors – the matter is required to re readjudicated – Decided in favour of revenue. Addition u/s 40(a)(ia) – Held that:- The AO in the absence of any details by the Assessee considered the aggregate payment ₹ 13,01,617/- made on account of fabrication, labour, painting and plumbing charges as not allowable u/s 40(a)(ia) of the Act – assessee has submitted that Assessee was not liable to deduct TDS u/s 194C as Assessee being individual and in the immediately preceding year the turnover of the Assessee was less than 40 lacs - the factual aspects needs verification – thus, the matter is remitted back to the AO for fresh decisio – Decided in favour of assessee.
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