Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 1856 - AT - Income TaxInterest on FDs - as per DR definitely it is an income earned by the assessee but it has not disclosed it in its return - HELD THAT:- It is clear from the above that as per TDS certificates , the assessee has earned an interest income of ₹ 1,01,72,545/-but it has admitted ₹ 87.78 lakh only as interest income in its Return. Thus, this issue requires verification & reconciliation and hence we set aside this issue to the AO . The AO after giving adequate opportunity to the assessee would decide this matter in accordance with law. Negative cash balance - CIT(A) after considering normal trading pattern of the assessee prior and subsequent to March, the remand report and the purchase statement obtained from PEC Ltd etc held that if purchases and sales were entered as and when they took place, the negative cash balance would not have arisen - HELD THAT:- It is clear from the above that the CIT (A) has examined this issue and drawn due conclusion. The Revenue has not brought any material to assail such conclusion and hence we confirm the decision of the CIT (A). Undisclosed turnover - CIT (A) has examined the issue and found that the turnover made by M/s Spectra Investments on behalf of the assessee exceeded the cash turn over of the assessee at ₹ 7.06 crore as against ₹ 8.03 crore adopted by AO. He found the % of GP in this line of business .He has held that what to be taxed in such situation is only the profit element and not the entire turnover as the deduction for the cost of goods has necessarily to be allowed - HELD THAT:- CIT(A) has not properly appreciated the facts stated by the AO in his remand report dt 28.9.2010. Since this issue this issue requires verification & reconciliation we set aside this issue to the AO . The AO after giving adequate opportunity to the assessee would decide this matter in accordance with law. Addition on account of exchange fluctuation earned by the assessee - CIT (A) held that the assessee had incurred a net loss on account of exchange difference and deleted the entire addition - HELD THAT:- CIT (A) has not properly appreciated the facts stated by the AO in his remand report dt 01.03.2011. Since this issue this issue requires verification & reconciliation we set aside this issue to the AO . The AO after giving adequate opportunity to the assessee would decide this matter in accordance with law. Addition on short accounted interest income - CIT(A) called for a remand report and after examining it held that the ledger extract of the account copy of the assessee in the books of PEC Ltd is to be considered to arrive out the correct amount of income earned by the assesseee on the FDs from PEC Ltd and on such basis found that the assessee earned interest income but admitted in its books at ₹ 5,45,45,971/- only and hence confirmed the addition at ₹ 29,45,468/-only. - HELD THAT:- Since the Revenue has not brought any material to assail the conclusion of the CIT (A), we confirm the decision of the CIT(A). Unaccounted investment in purchase and sale of 85 Kgs of gold u/s 69 - Whether CIT(A) is not justified in deleting the addition and it is therefore prayed that AO's action may be upheld? - HELD THAT:- CIT (A) examined the materials furnished during remand proceedings and arrived the above conclusion. This being so, the Revenue has not brought any material to assail the above findings and hence we confirm the decision of the CIT (A). Addition u/s 69A - Cash found in search - HELD THAT:- Before the CIT (A), the assesseee pleaded that it had cash on hand as per its books as on 28.01.2005 at ₹ 2,62,65,903.77/-and therefore it cannot be said that the appellant is in possession of unexplained cash. The CIT (A) called for a remand report and the AO was silent on this issue. He held that the fact remains that the very cash book with which the AO relied upon to conclude the assessments show a cash balance of ₹ 2,62,65,903.77/- as on the date of search and this fact has not been denied or controverted by the AO and hence the CIT (A) deleted the addition. Thus, the Revenue has not brought any material to assail the conclusion of the CIT (A), we confirm the decision of the CIT (A).
|