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2018 (12) TMI 579 - AT - Income TaxAddition u/s.68 - Held that:- We find that the assessee has taken loan from Shri M.Mehta, Proprietor of Amit Handling Agencies on October 19th, November 22nd and December 19th total to ₹ 14 lakhs. The perusal of bank statement shows that the assessee Shri M.Mehta has deposited cash of ₹ 2 lakhs on 19.10.2002, ₹ 5.5 lakhs on 22.11.2002 and ₹ 6.5 lakhs on 19.12.2002 and immediately thereafter cheques were given to the assessee on respective date. This fact is also confirmed by the Shri M.Mehta recorded on oath u/s.131 of the Act wherein he deposed that he has given 3 cheques to Shri Latif Ayub Kewar, partner of M/s.Kewar Handling and Transporting Company and he deposited those in his bank account and he was the person who deposited those amount in his bank account and got the cheqeus cleared, the addition confirmed by the CIT(A) as therefore upheld. Accordingly, this ground of appeal of the assessee is dismissed. With regard to ground of Revenue we find that the assessee has furnished details like copy of ledger account acknowledgment receipts, IT Return, Bank Statement and Cash Book, audited report. Further, the AO has also given a finding that the transaction is genuine in his remand report as mentioned in the para 5 of the appellate order. Therefore, merely because the person concerned were not appeared before the AO does not mean that the aforesaid creditors are not genuine. In the light of these facts, we find no reason to interfere with the findings of the ld.CIT(A), accordingly same is upheld, therefore, ground no.1 of the Revenue of appeal is also dismissed. Addition of labour expenses - NP estimation - Held that:- Cash must be paid to these labourers and truck drivers from source which are not disclosed to the data. This, itself states that there is no doubt in genuineness of the expenditure but AO had made estimation of the undisclosed sources for such expenditure. We further find that on similar facts in the case of sister concern of the assessee ITAT had estimated the net profit @1.4%.
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