Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 959 - AT - Income TaxDifference in the income as reflected in AIR information data base vide 26AS and income as reflected in books of accounts - Held that:- Until the assessee comes out with satisfactory and plausible explanation, this onus will not stood discharged. The assessee in the instant case has stated that there are large number of transactions exceeding 900 and hence it is not possible to reconcile the difference of ₹ 2,28,424/- is not a satisfactory explanation to discharge onus cast on the assessee. In our considered view keeping in view facts and circumstances of the case as well magnitude of transactions , we are of the considered view that one more opportunity need to be granted to the assessee to reconcile the difference in the income as reflected in AIR information data base vide 26AS and income as reflected in books of accounts wherein the assessee can also resort to calling account statements from the said parties wherein the amounts were not reconciled , to reconcile the difference wherever the said difference exceeded ₹ 10,000/-. We are inclined to accept difference of ₹ 10,000/- and less between the income as reported in books of accounts and income as reported in form no 26AS keeping in view smallness of difference and difficulties faced in reconciling the same. Disallowance of expenditure towards interest incurred in relation to earning of exempt income u/s 14A - Held that:- The figure of investments in shares which are capable of yielding exempt income was undisputedly adopted by the AO as ₹ 3,35,337 as at beginning of year and ₹ 3,53,838/- as at year end while computing disallowance u/r 8D(2)(ii) of 1962 Rules r.w.s. 14A of 1961 Act. There is no averment/finding on record brought by authorities below that interest bearing funds were specifically invested in assets being shares capable of yielding exempt income and in the absence thereof , the presumption shall apply that the assessee has used its own interest free capital which undisputedly was of ₹ 32,68,881/- and the same was utilized for making investments of ₹ 3,53,838/- in shares which were capable of yielding exempt income. - Decided in favour of assessee.
|