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2010 (1) TMI 50 - HC - Income TaxUnaccounting expenses – addition u/s 69C – claim of deduction u/s 80IA for job working unit - It is contended by the revenue that in view of the proviso to Section 69C inserted with effect from 1-4-1999 (relevant to A.Y. 1999-2000), the unexplained expenditure which is deemed to be the income of the assessee cannot be allowed as a deduction under any head of income if the assessee fails to explain the source of such expenditure. It is contended that to overcome this difficulty, the assessee has sought to claim that the expenditure was incurred during A.Y. 1998-1999 without any justification – held that - In other words, in the absence of any material on record, it was not open to the A.O. to hold that the expenditure incurred by Tips Films Pvt. Ltd. related to AY 1998-99 and the expenditure incurred by the assessee related to AY 1999-2000. Similarly, there is no material on record to suggest that the persons whose names are noted in the seized papers are not the employees of the assessee. In these circumstances, the finding recorded by the Tribunal that the amounts in question represent the amount paid by the assessee to its employees in AY 1998-99 cannot be faulted. Consequently, the first question raised by the revenue cannot be said to give rise to any substantial question of law. - once the cash withdrawal of Rs.5 lacs from the bank by the assessee is established, irrespective of the entry in the cash book, it was possible to reasonably hold that out of the cash withdrawal of Rs.5 lacs, an amount of Rs.4 lacs was given to cashier Mr. Desai. In such a case, it cannot be said that the decision of the Tribunal is perverse or contrary to the evidence on record. - when the assessee has been claiming deduction under section 80IA even on goods manufactured from outside agencies, there is no reason to suspect that the assessee would suppress the above facts in the assessment years in question and consequently make disallowance under section 80IA of the Act in the block assessment order.- Revenue appeal dismissed.
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