Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 418 - AT - Income TaxAddition u/s 68 - un-explained cash credit - Held that:- The primary onus is on the assessee-firm to establish the identity of the creditors, creditworthiness of the creditors and genuineness of the loans of ₹ 48,23,752/- raised by the assessee-firm and stood credited in its books of accounts as per mandate of Section 68 of the Act which in our considered view , the assessee-firm has failed to discharge the burden cast on it as per provisions of Section 68 of the Act despite sufficient opportunities given to the assessee firm during the course of assessment proceedings u/s 143(2) read with Section 143(3) of the Act before the AO and the appellate proceedings before the CIT(A) and also before the Tribunal. Thus keeping in view the peculiar facts and circumstances of the case, we have no hesitation in confirming the orders of the CIT(A) sustaining the additions to the income of the assessee-firm as un-explained cash credit u/s 68 of the Act. - Decided against assessee Additions made u/s 41(1) with respect to ceased liability - Held that:- CIT(A) has passed a well reasoned order making an rational and reasonable estimate of disallowance @10% of purchases towards disputes of the assessee-firm with creditors for purchases towards rate overcharging claim , claims for expired products etc which is very rational and reasonable estimate , more-so keeping in view that unfortunately the assessee-firm has consistently chosen a path of non cooperative attitude during assessment proceedings as well appellate proceedings. The assessee-firm again chose not to avail opportunity of being heard before the Tribunal. We have no hesitation in confirming the well reasoned order of the CIT(A) dated 12.04.2011 making rational and reasonable estimate of disallowance of ₹ 6,14,124/- @10% of purchases of ₹ 61,41,240/- during the year - Decided against assessee
|