Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 1774 - ITAT DELHIUnexplained cash credit u/s 68 - amount was found credited in the capital account of the proprietary concern of the assessee - CIT-A deleted the addition admitting additional evidence - contention of the AO is that the assessee failed to explain source of the credit of this amount in his books of accounts - only grievance of the Revenue is that the material relied upon by the Ld. CIT(A) was in the nature of the additional evidence and the AO should have been provided opportunity to rebut or verify the same - HELD THAT:- In the impugned order, the Ld. CIT(A) has nowhere mentioned that documentary evidence supporting this claim of the assessee were forwarded to the AO and any comment was provided by the AO. We feel it appropriate to restore this issue for verification by the Assessing Officer and decide in accordance with law. The assessee is directed to produce all relevant documentary evidence in support of its claim before the AO. If on verification of the saving bank account of the assessee, the contention of transfer of money from saving account to the current account of proprietary concern is verified, then no addition is required on this account . The ground of the appeal is accordingly allowed for statistical purposes. Unexplained investment u/s 69 - As alleged assessee during assessment as well as Remand proceedings had failed to furnish complete documentary evidence in support of his claim - CIT-A deleted the addition - AO is claiming that no document in support of purchase agreement of the property was produced before him in remand proceeding - in view of no documents provided in support, the Assessing Officer objected to admission of the additional evidences - HELD THAT:- CIT(A) has allowed the issue in dispute without following the provisions of Rule 46A of the Rule and, therefore, we feel it appropriate to restore the “issue-in-dispute” to the file of the Assessing Officer for deciding the issue afresh, with the direction to the assessee to produce all the documentary evidence relied in support of its claim, before the Assessing Officer. Though the issue of dealing with Rule 46A should have been in normal course restored to the Ld. CIT(A), but we have already restored the issue in dispute involving Ground No. 1 to the Assessing Officer, thus to avoid proceedings at multiple level, we have restored this issue also to the file of the Assessing Officer. The ground of the appeal is accordingly allowed for statistical purposes. Disallowance of the interest paid on bank borrowings, which according to the AO were not used for the purpose of the business - HELD THAT:- As it is not clear from the submission filed by the assessee before the lower authorities or before us as how the loan fund received from bank and unsecured loan was utilized for the purpose of the business. In the balance sheet, there is no comparison of the earlier years, which could indicate the investment made during the year or money advanced during the year. In view of the above facts and circumstances, we feel it appropriate to restore this issue also to the file of the Assessing Officer for complete verification of whether the loans have been utilized for the purpose of the business or have been diverted to non-business purposes. The assessee is directed to provide all details of the loan sanction letter, detail of disbursement of the loan and ultimate use towards stock or debtors along with documentary evidences. The assessee shall be afforded adequate opportunity of being heard. Accordingly, the ground of the appeal is allowed for statistical purposes. Disallowance at the rate of 25% out of the expenses claimed on telephone, vehicle repair, interest and car loan, depreciation on car and conveyance - HELD THAT:- We find that the assessee has not established either from the call details of the telephone or mobile that all the expenses incurred on telephone are for the business purpose. Similarly, the assessee has not produced any logbook of the car to demonstrate that it was used wholly and exclusively for the purpose of the business and no personal use was taken. In case of such disallowance on account of personal use, the onus is on the assessee to produce the desired documents of details of use of the vehicles or telephone, maintained in day-to-day course, otherwise only course left would be to estimate the disallowance on the basis of a small sample for a week or a month and then extrapolate the same for the entire year. Since we have already restored other grounds of the appeal to the Assessing Officer for deciding a fresh, we feel it appropriate to restore this issue also to the file of the Assessing Officer for ascertaining non-business purposes use of the telephone or car or conveyance on the basis of documentary evidences. The ground of the appeal is accordingly allowed for statistical purposes. Treating the sale of agricultural land resulting into long-term capital gain - whether the land which was sold by the assessee, was agricultural land in terms of the provisions of the Act? - admission of additional evidence - HELD THAT:- We agree with the observation of the learned DR that the handwritten certificate is not bearing any seal or name of the Patwari or the person who has issued the certificate. The learned counsel has also not produced the original return of income filed for the earlier years to establish that agricultural income was offered for rate purposes in those returns. The Assessing Officer objected admitting of the additional evidences, however, the Ld. CIT(A) admitted the evidences after giving his reasoning. But the Ld. CIT(A) was required to make compliance of the Rule 46A(3) of the Income Tax Rules, 1962 and provide opportunity to the Assessing Officer to rebut those evidences as held by the Hon’ble Delhi High Court in the case of Manish Buildwell Private Limited [2011 (11) TMI 35 - DELHI HIGH COURT]. In view of the above facts and circumstances, we feel it appropriate to restore this issue to the file of Assessing Officer for deciding afresh, with the direction to the assessee to produce all the necessary documentary evidence in support of its claim. Ground allowed for statistical purposes.
|