Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1628 - AT - Income TaxAddition of 30% of sundry creditors - CIT(A) deleted the addition - Held that:- Disallowance of 30% of sundry creditors on ad hoc basis is arbitrary. We do not understand how such addition can be made by the AO. The factual findings of the ld. CIT(A) could not be controverted by the ld. DR. - Decided in favour of assessee. Ad hoc disallowance of 30% of expenses on estimate basis - CIT(A) deleted the addition - Held that:- The records show that the necessary registers and details were produced by the appellant before the AO during the remand proceeding. The said expenses relate to salary, insurance paid to insurance companies on vehicles and stock, advertisement, legal and professional charges and telephone charges etc. The ld. AR has submitted that TDS has been deducted wherever required under the law, the details of which were produced before the AO except for interest paid Cholamandalam DBS. The AO has not pointed out any specific defects in the books of account, except making some flimsy comments in the remand report, despite the fact that the ld. CIT(A)-VI had remanded the matter to the AO for examination as many as three times. In view of the above, disallowance to the extent paid to Cholamandalam DBS without TDS is confirmed. The balance addition of ₹ 5,60,156/- is deleted - Decided against revenue.
|