Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 22 - AT - Income TaxUnclaimed liability and cessation of liability - CIT(A) deleted the addition - Held that:- It is an uncontroverted finding by the CIT(A) that the amounts which were shown as payable to M/s. Geo-chem Laboratories, M/s. Jain House and Shri Sohan Lal Ghai have been subsequently paid by the assessee. Under these circumstances, there cannot be any good reason to conclude that these were ceased liabilities. We have also noticed that the details of identity, creditworthiness and genuineness of the creditor Ms Priyanka Jhunjhunwala were duly furnished and the revenue has not brought on record any material against the same. In any case, there is no dispute that these amounts reflected in the balance sheet were not even written back by the assessee and these being so shown in the balance sheet also constituted as an acknowledgment of debt, as was held by Hon’ble jurisdictional High Court in the case of CIT vs. Shri Vardhman Overseas Ltd. (2011 (12) TMI 77 - DELHI HIGH COURT). In view of these discussions, as also bearing in mind entirety of the case, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. - Decided against revenue. Disallowance of salary - amount was far more excessive as compared to preceding year when there was some business activity whereas in the period under consideration there was no business activity - CIT(A) deleted the addition - Held that:- There is nothing more than increase in expenditure which has been put against the assessee in support of impugned disallowance but even this alleged increase in debit overlooks the fact that while overall expenses were broadly the same, the increase in net debit was due to no recoveries from sister concern. In any event, as uncontroverted findings of the CIT(A) show, all the requisitioned details were before the authorities below and the disallowance was thus wholly uncalled for. A decrease, or even absence, of business activity does not necessarily lead to proportionate reduction in staff salaries. In view of these discussions, as also bearing in mind entirety of the case, we approve the conclusion arrived at by the CIT(A) and decline to interfere in the matter. - Decided against revenue
|