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2015 (9) TMI 1729 - AT - Income TaxAddition u/s 68 - Unexplained cash credits - HELD THAT:- We agree with the contention of DR that in view of the peculiar facts of the assessee’s case the decision in the case of Orissa Corporation (P) Ltd (1986 (3) TMI 3 - SUPREME COURT] may not be applicable and recording of the statement of the creditor is essential so as to ascertain whose money was actually deposited in the bank account of the creditor, whether it was unaccounted cash of the assessee or it was the cash in hand of the creditor. Therefore, we set aside the orders of the authorities below and restore the matter back to the file of the AO - We direct the assessee to produce all the 11 creditors before the AO. AO will record their statements and will also consider the explanation/evidences as may be furnished by them and thereafter readjudicate the issue in accordance with law. Addition of cash credit - Allowance/disallowance of interest would be consequential to the acceptance or otherwise of the cash credit. We, therefore, set aside the orders of the authorities below on this point also and restore the matter back to the file of the Assessing Officer to be re-adjudicated along with the issue of addition for cash credit. Addition of 20% disallowance out of telephone expenditure - HELD THAT:- Assessee is a partnership firm. The personal use of telephone by the partners cannot be ruled out. However, we deem it proper to reduce the disallowance to ⅙ (one sixth) as against 20% made by the Assessing Officer.
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