Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 1174 - AT - Income TaxUnexplained cash credits as in-genuine gift received from brother - CIT-A deleted the addition - Held that:- The source of gift was maturity proceeds of tax free GOI relief bonds 1999 and 2001 respectively in which Mr. Zulfikar K. Momin had invested and against lien of which, M/s. Opal Stone Industries, the proprietorship concern of the assessee had taken revolving credit facilities of ₹ 4,00,00,000/- from ICICI Bank and loan of ₹ 80,00,000/- from Development Credit Bank. Consequent to lien, these bonds were transferred in the name of ICICI Bank and Development Credit Bank. On maturity the proceeds of these bonds were directly credited in the loan account of the assessee with ICICI Bank and Development Credit Bank and adjusted against the outstanding loans. Mr. Zulfikar K. Momin gifted the above/equivalent amount to the assessee. The Ld. CIT(A), relying upon the various case laws, observed that the ₹ 3,18,41,394/- made u/s 68 of the Act by the AO was not sustainable. Before us, ld. D.R. could not successfully point out any infirmity in the well reasoned order of the Ld. CIT(A). - Decided against revenue. Addition u/s 40(a)(ia) - TDS defaults - assessee not deposited the TDS before the due date as was prescribed u/s 40(a)(ia) - as per assessee he deposited the TDS before the due date of filing of return - Held that:- Since the challans representing the deposit of TDS were not produced before the lower authorities, hence, subject to the verification of the deposit of the TDS by the AO, we direct that the assessee's claim be allowed towards payment to the extent it exhibits payment of corresponding TDS by the due date of furnishing the return for the relevant year. So far the second part of the ground in relation to admission of additional evidence is concerned, since we have restored the matter to the file of the AO, this issue is disposed of accordingly with a direction that the assessee will be given proper opportunity by the AO to show/furnish evidence that the TDS was deposited before due date of filing and thereafter the AO to decide the issue in accordance with our above observations. Addition on account of foreign travel expenses - allowable business expenses - Held that:- The details of the expenditure were duly furnished during the assessment proceedings as well as appellate proceedings before the CIT(A) such as the name of person visited, name of the country, period of visit, detailed break-up of expenses etc. The detail of the customers and the country-wise business generated was also filed. It was also explained that the gifts and entertainment expenses were incurred for maintaining harmonious and cordial business relationship and personal rapport. The Ld. CIT(A), considering the overall facts and circumstances of the case, observed that since the details of the some of the expenditure was not fully verifiable and some personal element could not be ruled out, he therefore made an adhoc disallowance of ₹ 1 lakh out of foreign travelling expenses. No infirmity in the well reasoned order of the Ld. CIT(A) on this issue
|