Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 779 - AT - Income TaxIncome determined by the AO on the basis of the statement furnished by the assessee u/s. 131 at the time of survey operation - Rejection of books of accounts u/s 145(3) - estimating the professional income - Held that:- The assessee has produced the audited financial statements and no reference has been made to such books of accounts and accordingly no defect in books of accounts was pointed out. We also find that the ld. CIT(A) has clearly recorded his finding in his order that the AO has not specified manner of quantification of professional fees of ₹ 44 lakhs only. Addition has been made merely on the basis of statement/presumptive basis and no corroborative material has been brought on record. Presumption cannot take the shape of evidence, however, strong it may be. See D.S. AGENCIES AND ASSOCIATES & USHA DISTRIBUTORS Versus ACIT [2015 (12) TMI 1459 - ITAT MUMBAI]. Thus it can be concluded that the impugned addition was purely based on the statement recorded u/s 131of the Act. Thus the statement of the assessee cannot be the sole basis addition. The provisions of the law require the Revenue is to tax the real income of the assessee which should be based on the documents. AO is directed to delete the same. - Decided in favour of assessee. Disallowance of foreign travel expenses - assessee claimed the cost of foreign trips was sponsored by the company - Held that:- The assessee before the lower authorities has furnished the confirmation from the party ERIS in respect of Canada tour. Therefore it can be concluded that the assessee has not incurred Canada tour expenses outside the books. In this regard we also find that the lower authorities should have confirmed the same from the company whether the Canada tour was sponsored by it under section 133(6) of the Act. But we find that the AO failed to exercise his power given under the Statute. However the assessee before us failed to furnish the details in respect to the tour expenses to Thailand. Therefore, we are inclined to confirm the same to the extent of ₹ 1.08 lakh in respect of Thailand tour. Thus, in view of above we delete the addition made by the lower authorities in respect of Canada tour for ₹ 1.16 lakh only. Thus this ground of the appeal of the assessee is partly allowed.
|