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2016 (1) TMI 130 - AT - Income TaxAddition U/s 69C - as per AO furnishing of subsidiary cash book and affidavits regarding cash deposits was an afterthought - CIT(a) deleted addition - Held that:- The ld CIT(A) had examined this issue thoroughly and he directed the Assessing Officer during the assessment proceedings to make inquiry on the evidences submitted by the assessee. The ld Assessing Officer in remand proceeding was able to record the statement of 15 persons who had admitted the amount was deposited with the assessee. They filed affidavit of all the particulars i.e. names, addresses and source of income has been explained through these affidavits. It is a fact that these loans were in cash. There was no negative cash balance on the basis of subsidiary cash book produced by the assessee when the ld Assessing Officer raised the query on negative cash balance. The number of affidavits i.e. total 53 affidavits were submitted by the assessee, which supports the assessee’s case that deposits shown in the cash book were genuine. Therefore, the assessee has proved the cash available with her on given dates. - Decided against revenue Disallowance of salary and wages - CIT(a) deleted addition - Held that:- The assessee’s books of account are audited. The salaries of guards were paid by the telecom company to the assessee after verification. The working made by the ld Assessing Officer on the basis of evidence submitted by the assessee, the ld Assessing Officer have no jurisdiction to instruct how to conduct business and how to deploy the guards for security of the towers. The number of guards employment depend on the requirement of security personnel, which cannot be increased or decreased immediately on increase or decrease of business. It is continuous process and assessee had made these payments to commercial expediency as a prudent business man. The ld CIT(A) has also called for report during the appellate proceedings from the Assessing Officer, which has not been replied by him. The assessee also deducted ESI, which has been paid to the concerned department. Therefore, in absence of contrary evidence with the Assessing Officer, the ld CIT(A) was right in deleting the addition made by the Assessing Officer - Decided against revenue
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