Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 408 - AT - Income TaxAddition made towards difference in valuation of closing stock - Held that:- The method of valuation of closing stock adopted by the Learned AO in this assessment year should be adopted for valuation of opening stock for the assessment year under appeal. Hence we deem it fit and appropriate to set aside this issue to the file of the Learned AO to follow the aforesaid direction in respect of valuation of opening and closing stock of goods. - Decided in favour of assessee for statistical purposes. Addition made towards cash found during the course of survey - Held that:- AO had not rejected the books of accounts produced by the assessee. The cash was found and the business was allowed to be continued by the survey team. Hence there could be a situation that certain business receipts and payments could not have been properly entered on the day of survey itself. However, the cash book has been prepared and final balance sheet is prepared later on and presented before the Learned AO which are not rejected by the Learned AO. Hence in these facts and circumstances , we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the Learned AO to decide this issue afresh in accordance with law. The assessee is at liberty to file additional evidences and documents to explain the cash found during the course of survey with reference to its cash book of various divisions before the Learned AO. - Decided in favour of assessee for statistical purposes. Applicability of provisions of sec.40(ia) - whether applicable only to amounts of expenditure which are payable as on 31st March of every year and it cannot be invoked to disallow expenditure which has been actually paid during previous year without deduction of TDS as held by CIT(A) - Held that:- We find that the provisions of section 40(a)(ia) of the Act have been held to be applicable even for amounts paid before the end of the previous year by the decision of the Jurisdictional High Court in the case of CIT vs Crescent Export Syndicate (2013 (5) TMI 510 - CALCUTTA HIGH COURT ). Accordingly the ground raised by the revenue stands allowed. However, the alternative argument of the Learned AR that the second proviso to section 40(a)(ia) inserted with effect from 1.4.2013 in the statute wherein if the payee has included the relevant receipts in his books and filed returns thereon, then the assessee should not be invited with disallowance u/s 40(a)(ia) of the Act contains lot of force. This amendment has been held to retrospective in nature by the decision of the Hon’ble Delhi High Court in the case of CIT vs Ansal Land Mark Township (P) Ltd reported in (2015 (9) TMI 79 - DELHI HIGH COURT ) - Decided in favour of revenue for statistical purposes.
|