Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 686 - AT - Income TaxRejection of books of accounts - estimation of income - Addition made on account of estimation by holding the books of accounts are correct - Held that:- CIT(A) observed that sale of commercial portion @ 826.75 per sq.ft., expenditure not claimed under the head “substructure & super superstructure” in profit & Loss account, AS-7, advance received for residential portion not included in sales consideration, discounts offered to parties for making full payments does not justify to reject the books of accounts and estimation of profits thereon, thereby, the CIT(A) held that books of accounts are completed as correct and deleted the addition. CIT(A) examined the record together with the two remand reports and come to the above conclusion in favour of the assessee. Further, it is observed that the CIT(A) placed reliance on the decision of Hon’ble Supreme Court in the case of Realest Buildings & Services Ltd. [2008 (5) TMI 6 - SUPREME COURT] - decided against revenue Addition made on account of unexplained cash credit u/s 68 - Held that:- As all the three ingredients identity, creditworthiness and genuineness of transaction were proved and the addition made thereon is to be deleted. Addition made on account of bogus sundry creditor - Held that:- AO issued notice u/s 133(6) of the Act to M/s. Nivedita Enterprises and the notice was returned unserved with an endorsement “Not known”. The AO held that an amount of ₹ 9,70,426/- is bogus and added to the total income of the assessee. Before the CIT(A), the assessee submitted copy of trade license, profession tax enrollment certificate and copy of PAN card relating to M/s. Nivedita Enterprises and the CIT(A) inturn sought remand report from AO. The CIT(A) considering the submissions of the assessee, and remand report deleted the addition made by the AO - no infirmity in the order of CIT(A) and it is justified. Thus, Ground raised by the Revenue is dismissed.
|