Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 140 - AT - Income TaxTrading addition - addition deleted by learned first appellate authority - Held that:- AO has completed the assessment on hypothetical and arithmetical basis which is not permissible under the law. He has made the assessment for full financial year and, therefore, any analysis during mid year is misleading and uncalled for. However, the comparison of trading account with the Input Tax Account and Output Tax Account, whether made up to 24.08.2006 or for the whole year i.e. 01.04.2005 to 31.03.2006 fully tally with the trading account as per books of account. Finally, the learned first appellate authority has rightly deleted the addition of ₹ 27,32,912/- after appreciating the evidence produced by the assessee for the whole year in dispute. Thus, we find no infirmity in the impugned order on the deletion of addition in dispute and we uphold the impugned order on this very issue. - Decided against revenue. Disallowance of bad debts - FAA deleted the addition - Held that:- Learned first appellate authority has rightly observed that the assessee-firm has sold goods to M/s Raaga International, Tarn Taran Road, Amritsar in May, 2004 by three bills for total amount of ₹ 1,82,250/-. Only one payment of ₹ 37,500/- was received during the financial year 2004-05 and the balance of ₹ 1,44,750/- was irrecoverable and claimed as bad debts. On the basis of various documentary evidence filed by the assessee as well as on the basis of judgment of Hon'ble Supreme Court of India) in the case of T.R.F. Ltd. Vs. Commissioner of Income Tax (2010 (2) TMI 211 - SUPREME COURT , the learned first appellate authority deleted the addition in dispute. Secondly, it is also not disputed by the Assessing Officer that the recovery of amount in dispute is still unrecovered. Therefore, the addition in dispute amounting to ₹ 1,44,750/- has rightly been deleted by learned first appellate authority and we uphold the impugned order on the deletion of addition of Rs. ₹ 1,44,750/-. - Decided against revenue.
|