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2018 (6) TMI 220 - AT - Income TaxRejection of books of account - Trading addition - CIT(A) has deleted the addition by observing that the AO’s action to reject the books of account is not tenable - Held that:- In assessee's own case for the Assessment Year 2011-12 had granted relief to the assessee for the same issue. It is also noted that the assessee had filed the statutory audit report before the CIT(A) which had not been disputed by the Department. AR of the assessee also submitted the reason of decrease in percentage of G.P. is increase of input cost in comparison to previous year. AR further that the cost of material and wages increased due to production of high quality product but the price of the product could not be increased in same proportionate due to stiff competition with China. No addition to be confirmed - Decided in favour of assessee Addition of ESIC and PF (employee’s contribution) - sum not deposited within time - Held that:- addition of ₹ 9,706/- observing that the assessee collected employees contribution towards ESIC but did not deposit it within the due date as prescribed under the relevant Act and treated the same as income u/s 2(24)(x) of the Act. In first appeal, the ld. CIT(A) has deleted the addition taking the support of Jurisdictional High Court in the cases of CIT vs Udaipur Dugdh Utpadak Sahakari Sangh Ltd [2014 (8) TMI 677 - RAJASTHAN HIGH COURT] and in the case of CIT vs SBBJ [2014 (5) TMI 222 - RAJASTHAN HIGH COURT]. It is pertinent to mention that such liabilities were paid by the assessee before due date of filing of return then no such disallowance can be made. - Decided against revenue
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