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2015 (6) TMI 390 - AT - Income TaxAddition in respect of opening capital balance as on 1st April, 2004 - Held that:- The assessee appears to be partnership firm as per the balancesheet, but filed the return for the year under consideration in the status of HUF. In the account of the partners, there is Addition of opening capital balance as on 1st April, 2004 - Held that:- Opening balance but the assessee did not file the return of the partnership firm for Assessment Year 2004-05, though the return was filed by Shri Navnitbhai B Patel, as Proprietor of M/s. Patel Beverages for Assessment Year 2004-05. However, the CIT(A) has recorded the finding that in such return there is no closing balance in the account of partners amounting to ₹ 4,04,469/- each. On these facts, the onus was heavy upon the assessee to justify how he has shown the opening credit balance for the Assessment Year 2005-06 when there was no closing balance in Assessment Year 2004-05. In these peculiar facts, the decision of the Hon’ble Jurisdictional High Court in the case of Pankaj Dyestuff Industries (2005 (7) TMI 601 - GUJARAT HIGH COURT ), would not be applicable to the case of the assessee. Considering the facts of the case and the arguments of both the sides, we do not find any justification to interfere with the order of the CIT(A) on this point and the same is sustained. - Decided against assessee. Disallowance of expenses - Held that:- CIT(A) considered each and every expenses and has sustained the disallowance only when the expenditure was not allowable. The ld. Counsel for the assessee was unable to controvert the findings recorded by the CIT(A). - Decided against assessee. Disallowance of expenses - CIT(A) confirmed part disallowance - Held that:- When all the expenses debited to the profit and loss account have been considered for disallowance, the disallowance sustained at 20% of all the expenses is excessive. We, therefore, reduce the same to 10% and direct that the disallowance be restricted to ₹ 7,53,987/-. - Decided partly in favour of assessse.
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