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2016 (4) TMI 130 - AT - Income TaxAddition on account of difference in estimated value of shops and actual receipt - assessee has dissolved firm and distributed shop to partners - Held that:- CIT(A) has examined the issue lucidly and that too of all possible angles. The firm was disallowed w.e.f. 1-4-2006. On dissolution of the firm, assets must have been distributed. Unsold stocks represented shops/offices space fallen to the assessee. The moment the firm was dissolved, this stock was converted into capital assets of the partners. The AO could have taken action as per section 45(4) of the Income Tax Act against the firm on its dissolution in that assessment year. The ld.First Appellate Authority has examined this aspect in the findings. Once it is held as capital asset, then, the capital gain would accrue to the assessee and it can be enhanced with the help of section 50C only. The ld.CIT(A) has also done that. This action of the ld.CIT(A) has not been challenged by the Revenue in its grounds of appeal. - Decided against revenue Addition on advances given to some agriculturists in cash - Held that:- No merit in this ground of appeal raised by the Revenue. The assessee has explained that the source of money has duly been accounted for in his books. The AO has not doubted this source of money. Therefore, he cannot make the addition.- Decided against revenue
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