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2016 (6) TMI 119 - AT - Income TaxAddition on difference in freight charges - difference in disclosure by the assessee in its return of income vis-à-vis TDS Certificate - CIT(A) accepted assessee’s contention that this receipt was not disclosed in the return, because the exact amount was spent by the assessee and no profit was earned on this receipt - Held that:- We do not find any merit in this observation of CIT(A) insofar as even if the assessee had incurred expenditure equal to the amount of receipt, both receipt and expenditure are required to be shown in the audited profit and loss account as income and expenditure respectively along with supporting evidence of expenditure so incurred for earning the concerned revenue. Accordingly, the addition deleted by the CIT(A) has no legs to stand. In the interest of justice, we restore this matter to the file of AO for deciding afresh after verifying assessee’s contention that it has incurred equal amount of expenditure with regard to labour charges received so as to reach to the conclusion that no income has been generated out of it. The AO is also directed to verify whether in the audited P&L account the assessee has included both income and expenditure and to decide the issue afresh. - Decided in favour of revenue for statistical purposes. Accrual of income - Income accounted for in the next financial year - Held that:- The amount of ₹ 4,11,234/- was deleted by CIT(A) on the plea that this income pertains to the bills raised by the assessee in the month of March, which has been taken by the assessee as its income in its account in the month of April, 2008. However, nothing was placed on record by the assessee to justify CIT(A)’s conclusion that this income was accounted for in the next financial year. In the interest of justice, we restore this amount of ₹ 4,11,234/- to the file of AO to verify as to whether the assessee has accounted for this income in the subsequent year, so as to justify its of not including the same in the year under consideration. Decided in favour of revenue for statistical purposes.
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