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2015 (1) TMI 359 - AT - Income TaxDeletion of addition – Rejection of books of accounts u/s 145(3) – Violation of provisions of section 40A(3) or not – Held that:- The assessee was engaged in an exclusive dedicated transport services to M/s. Gujarat Ambuja Cements Ltd. and an agreement dated 31.03.2002 was entered into - The transportation was being done of cement, clinker etc. etc. to various destinations from the factory premises at Rabriyawas, Rajasthan - CIT(A) rightly admitted additional evidences and forwarded the same to the AO for examination - These evidences were confirmations from the transporters - CIT(A) has also considered these confirmations and has also test checked the accounts of the transporters to verify the claim that cash payments for individual truck loads does not exceed ₹ 20,000/- per day - revenue has failed to controvert the factual finding of CIT (A) - assessee contended that because of fall in the gross profit on account of increased competition in the market - due to inability to make adequate profits from the business, the assessee has shut down the transport business w.e.f. 31.01.2010 – relying upon Vinod Kumar Pramod Kumar vs. ITO [1999 (12) TMI 117 - ITAT JODHPUR] wherein it has been held that minor variation in the gross profit declared in the year under consideration as compared to previous years by itself cannot justify any addition - CIT (A) has rightly deleted the addition – Decided against revenue. Addition on claim of exemption u/s 54 deleted – Sale of residential house and investment in new residential house - Held that:- The payments for the purchase of new residential unit were during the period 24.01.2006 to 26.11.2009 - assessee has received possession of the new house on 26.11.2009 - The original asset was sold on 04.06.2007 - Thus, the investment in the new residential house was made during the allowable period of three years from the date of transfer of the long term capital asset - The reliance was also placed on the CBDT’s Circular No.672 dated 16.12.1993 – thus, the order of the CIT(A) is upheld – Decided against revenue.
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