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2015 (10) TMI 1416 - AT - Income TaxAddition on cash paid to partner Shri Sukhdev Singh - Held that:- We find that the basic facts in this case are not in dispute. The assessee firm has paid ₹ 16.5 lacs to its partner Shri Sukhdev Singh and the necessary entries were passed in the regular books of account of the assessee firm. The cash entry of ₹ 16.5 lac was reflected in the ledger account of Shri Sukhdev Singh in the books of account of the assessee firm, copy of which has been filed by the assessee before the CIT(A). The CIT(A) in these facts held that AO did not properly appreciate the facts of the case and that the entries were explained and addition was deleted. The cash payment made by the assesee firm to its partner was genuine and duly reflected in the accounts book of assessee firm and was fully explained and therefore no case of addition of this amount as income in the hands of the assessee firm is made out by the revenue and there being no merit in the ground No. 1 of the revenue, the same is dismissed. - Decided in favour of assessee. Addition on account of purchase made for non business purpose - CIT(A) deleted the addition - Held that:- CIT(A) has given a finding that there is no basis for holding by the AO that these transactions of purchases were not for business purposes of the assessee. The purchases were supported by the purchase bills produced by the assessee. The complete postal address of the seller parties were furnished to the AO. The CIT(A) has recorded that during the relevant year the assessee has diversified and started the business of supplying construction material and entered into the MOU with M/s. Pushan Properties and Developers Pvt. Ltd. and therefore the finding of the AO that the purchase transactions were for the purpose of non business was not correct. There being no mistake in the order of the CIT(A) on this issue. - Decided in favour of assessee.
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