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2014 (12) TMI 512 - ITAT DELHIRevision u/s 263 - Additions made by AO – Addition made without proper justification - Enquiries, examinations and verifications were made by the AO or not - Held that:- There is no basis for the AO to treat the amount credited in the bank account of Sh. Ashok Kumar as the benami transaction - as per the seized documents it is clearly established that the sum credited in the bank account of Sh. Ashok Kumar pertains to assessee’s firm, but the AO has not at all deal with the nature of the seized material and what was the content thereof - CIT(A) has given a finding that, how Sh. Ashok Kumar has been treated as the benami of the assessee is neither coming out from the order of the AO nor from the assessment records examined by CIT(A) - there is no infirmity in the order of the CIT(A) in this regard. The submissions do not serve any purpose as neither in the order of the CIT u/s. 263 nor in the assessment order any material is there to show that the sum credited in the bank account of Sh. Ashok Kumar was the benami transaction of the assessee firm - CIT(A) has every right to adjudicate upon the order of the AO appealed before him judiciously – thus, the order of the CIT(A) is upheld - the addition was based on surmises and conjectures and was not at all supported by the evidences or the material on record - AO’s order does not cogently prove that addition of ₹ 6,40,896/- is warranted for amount of unexplained stock. Also, AO has made the addition by estimating the net profit @ 10% on the basis of figures of sales culled out by him at ₹ 1,00,71,689 - CIT(A) has examined the addition and estimation of sales by the AO after duly elaborating upon the issues - CIT(A) has given a finding that the estimate of sales as computed by the AO is not supported by cogent basis - CIT(A) has finally computed the total sales figures of the assessee at the figures of ₹ 35,79,069 - CIT(A) rightly has applied 5% rate of profit – thus, the order of the CIT(A) is upheld – Decided against revenue.
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