Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 1585 - HC - Income TaxAddition of payment made on account of 'Mehta Sukhadi' - HELD THAT:- As decided in own case [2016 (5) TMI 490 - BOMBAY HIGH COURT] it is an agreed position between the parties that Question No.(a) as framed herein above, stands concluded against appellant and in favour of the revenue. Addition on account of inflation of labour charges - appellant is a partnership firm, engaged in the business of trading in tarpaulins, including renting the tarpaulins for hire and erection of Monsoon Sheds as required by its Customer - HELD THAT:- No basis to make any addition on account of labour charges. We notice that in the statement dated 15th September, 1988, Mr. T. V. Goshar has stated that labour expenses are inflated. It is pertinent to note that the order of the CIT(A) which partly deleted additions made on account of labour charges and restricted it up to 10% of ₹ 10.97 lakh, had itself rendered a finding that there was a shortcoming in the accounts of the labour charges till the date of search. In the above context, reliance by the Tribunal upon the statement made under Section 132(4) of the Act after considering the retracted statement, could not be faulted with. The view taken by the impugned order of the Tribunal is a possible view in the facts and circumstance of the present case. Thus, substantial question (b) as framed is answered in the affirmative i.e. in favour of the revenue and against the appellant-assessee. Addition on account of wrong billing - HELD THAT:- Impugned order does record that the Assessing Officer had rendered a finding that the appellant has not entered bills for hiring charges in its books of account in daytoday running of the business. Thus, the contention of the appellant is not sustainable. Reliance is placed upon the decision of Gujarat High Court in N. K. Paper Board [1998 (3) TMI 102 - GUJARAT HIGH COURT] to hold against the appellant. We find that the citation is incorrect and does not assist the revenue. However, the impugned order of the Tribunal even in the absence of the above decision cannot be held to be bad in law. In the above circumstance, the view of the Tribunal in upholding the order of the Assessing Officer to add an amount to the appellant's income cannot be faulted. This is a possible view on facts found. - Decided in favour of revenue
|