Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 83 - AT - Income TaxAddition on rebate on Hire purchase written off - Addition on additional Finance charges on account of change in method of accounting from Mercantile basis to Cash basis - CIT(A) deleted the addition - Held that:- The assessee company being in finance and leasing Business has claimed rebate on hire purchase written off in the books of accounts based upon the guidelines and accounting policies of ICAI. But no information was submitted to substantiate the claim before completion of assessment. In the appellate proceedings, the assessee has submitted written submissions and also filed ledger copies of hire purchase accounts, which the Assessing Officer could not verify the genuiness of the transaction. In the facts and circumstances of the case, we are of the opinion that under Rule 46A additional evidence was submitted before the Commissioner of Income Tax (Appeals) without providing an opportunity to the Assessing Officer to examine the issue and the next ground is connected to Hire purchase were the assessee company has not recognized additional finance charges on NPA and changed method of accounting from mercantile system to cash system. The ld. Authorised Representative explained the hardship and constrains of the company for recoveries, were majority of hire purchase transactions have defaulted and charging of additional finance charges on NPA will not be prudent practice for the company. The ld. Authorised Representative filed paper book and drew our attention to page no.17 were list of parties on which additional financial charges not recognized during the financial year 2004-2005. We considering the evidences submitted in appellate proceedings and submissions of the ld. Departmental Representative, set aside the order of the Commissioner of Income Tax (Appeals) and remit both the issues to the file of the Assessing Officer to re-examine in detail with evidence furnished after providing adequate opportunity of being heard to the assessee and decide the issue on merits - Decided in favour of revenue for statistical purposes.
|