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2015 (5) TMI 421 - AT - Income TaxIncome from other unexplained source - CIT(A) deleted the addition - Held that:- In the present case, it appears that the assessee furnished all the relevant details along with the books of accounts before the ld. CIT(A) who forwarded the same to the AO for his examination. However, the AO in his remand report did not point out any specific discrepancy in those books of accounts and other details. The AO had not given any reason for making the addition of ₹ 12,11,801/- which was lesser than the total receipts declared by the assessee at ₹ 14,23,065/-. In other words the total receipts declared by the assessee at ₹ 14,23,065/- also included ₹ 12,11,801/- which were arbitrarily added by the AO separately. In the present case, the assessee was carrying out the business of laying underground cable wires/excavation work and received hiring charges of ₹ 14,23,065/-, therefore, the ld. CIT(A) was justified in directing the AO to treat the receipt of ₹ 14,23,065/- as business receipts. No valid ground to interfere with the findings of the ld. CIT(A) - Decided against revenue. Disallowance of depreciation - CIT(A) deleted the addition in part - Held that:- the assessee was having old assets with opening written down value of ₹ 13,14,240/- and purchased new assets of ₹ 3,87,680/-. The ld. CIT(A) found that out of the aforesaid new assets three bills were in the name of Rohit Bhardwaj and not in the name of the assessee company. Therefore, the depreciation was not allowable on those new assets and the ld. CIT(A) rightly directed the AO in not allowing the deprecation on the furniture amounting to ₹ 66,648/- (Rs.38,561/- + ₹ 18,000 + ₹ 10,087/-). In respect of other assets nothing was brought on record to substantiate that those were not used for the purpose of business. We, therefore, do not see any valid ground to interfere with the findings of the ld. CIT(A). - Decided against revenue. Unexplained expenses - CIT(A) deleted the addition - Held that:- In the present case, it appears that the AO made the disallowance of almost all the expenses claimed by the assessee by presuming that no business activity was undertaken by the assessee. On the contrary the AO admitted the receipts of ₹ 14,23,065/- which were on account of machinery hire chargers and earth excavation. The assessee was also engaged in the business of laying underground cable wires, therefore, some expenses were required to be incurred in the business activity. In the present case, the AO did not bring any material on record to substantiate that the expenses claimed, were not incurred for business purposes but for personal purposes or other purposes. We, therefore, considering the totality of the facts, do not see any merit in this ground of the departmental appeal. - Decided against revenue.
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