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2015 (10) TMI 2813 - ITAT CHENNAIDisallowance of bogus expenses - action of the CIT(A) in disallowing expenses @ 2.5% as against 5% disallowed by the AO - HELD THAT:- We find that the assessee had claimed certain expenditure and no supporting evidences have been filed before the Assessing Officer. However, before the ld. CIT(Appeals), some vouchers were filed, which were perused in the presence of the AO and found that some vouchers are self-vouched. CIT(Appeals), keeping in view all the factors, restricted the disallowance from 5% to 2.5%. Therefore, we find no reason to interfere with the order passed by the CIT(Appeals) and accordingly, we dismiss the grounds raised by the Revenue. Addition towards unexplained investment in land - HELD THAT:- CIT(A) satisfied about the source of fund in assessment year 2003-04 that it came from M/s LKS Petroleum India Pvt. Ltd. CIT(A) is not justified in giving direction to the Assessing Officer to consider the same in assessment year 2004-05. In our opinion, if the cheque is issued from LKS Petroleum India Pvt. Ltd and is duly reflected in the books of account of LKS Petroleum India Pvt. Ltd and they are filing return of income then there is no question of treating the same in the hands of assessee as unexplained investment in assessment year 2004-05. As such, the assessee has to explain the same before the Assessing Officer - we are remitting this issue to the file of the AO for fresh consideration. Unexplained expenses - CIT(A) deleted the addition on the reasoning that this was duly reflected in the books of account of DMDK party - contention of the ld. DR is that DMDK party is not maintaining the proper books of account and the expenses are not reflected in the books of DMDK party - HELD THAT:- As submitted that it was reflected in the books of account of the DMDK party. However, no material has been furnished to show that this amount of ₹ 25 lakhs is duly accounted for in the books of account of DMDK party. As such, we are not in a position to express any opinion on this issue and this requires further verification at the end of the AO - Accordingly, we remit this issue back to the file of the Assessing Officer for verification after giving adequate opportunity of hearing to the assessee.
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