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 1384 - AT - Income TaxUnexplained cash receipts u/s 68 - Held that:- The addition is unsustainable as the cash deposited is as per the books of accounts being regularly maintained by the assessee. The Assessing Officer has not pointed out which cash receipt or deposited in the bank is unaccounted for. From the documents filed before the Assessing Officer placed it is evident that assessee has given explanation for each receipt and deposit in the bank. Since the facts are identical following our order in the case of ACIT vs. Piron Education Pvt. Ltd. [2018 (11) TMI 339 - ITAT DELHI]we uphold the order of the Ld. CIT(A) deleting this addition Addition on account of bogus expenses - Held that:- The assessee is carrying on regular business and all the expenses have been actually incurred. Further the assessing officer has made the disallowance arbitrarily ignoring the fact that assessee has actually carried out the business. As regard the survey report on going through the assessment order we note that though the Assessing Officer is making a reference to the survey report but is ignoring the fact that the allegations made are generic and in the light of evidences submitted by the assessee before him how he has ignored the same. It is important to point out that the assessing officer has not rejected the books of accounts nor has held that the assessee is not carrying any business. The expenses incurred are accounted for in the books of account and there is no material brought on the record by the AO that these expenses have not been actually incurred. Addition u/s 40A(2)(b) on account of remuneration to director - AO has made the above disallowance in respect of payment made to Mr. Abhishek Asthana who holds only 5% share of the assessee company - Held that:- CIT(A) has deleted the addition holding that the remuneration paid is neither excessive nor unreasonable. Mr. Abhishek Asthana is a qualified Chartered Accountant and looking after the overall affairs. The learned DR could not controvert the above facts. The remuneration paid to Mr. Ashthana being a Chartered Accountant can’t be said to be excessive. Further he is looking after the overall affairs. The observation the assessing officer on this issue is factually incorrect. Addition in respect of the service charges received by the assessee from M/s ESAJV D-Art Indo India Pvt. Ltd. - Held that:- The facts of the present case are identical to the facts in the case of Piron Education Pvt. Ltd. (Supra). This entire amount of ₹ 38,60,500/- forms part of the receipt declared by the assessee as its income in the Profit & Loss account of the year under consideration. Accordingly following the reasoning given in our order dated 31.10.2018 in the case of ACIT vs. Piron Education Pvt. Ltd., (Supra), we direct the Assessing Officer to delete the entire addition on this account. In the result ground no. 4 of Revenue’s appeal is dismissed. Unexplained investment under section 69 - Held that:- Analysis of each of the creditors shows that assessee has filed sufficient evidences so as to establish identity, creditworthiness and genuineness of the transactions. There is nothing abnormal so as to draw any adverse inference against the assessee. It may be relevant to point out that he AO has made addition without application of mind. This fact gets established that AO has made addition of the amount paid back and not that of the amount received by the assessee. The above analysis clearly demonstrate that the assessee has discharged its onus fully in respect of the credit. The observation made by the AO in the assessment order are factually incorrect. AO has not brought any material so as to draw any adverse inference. He has indulged into surmises. The CIT(A) has rightly deleted the addition. Unexplained cash credits - Held that:- In the said appeal in the case of M/s Piron Education Pvt. Ltd. we have held that the addition is unsustainable as the cash deposited is as per the books of accounts being regularly maintained by the assessee and such cash in books of accounts represents the fee receipt from the students which has been included in the income. Since the facts are identical following our order and the reasoning in the above said order we uphold the order of the Ld. CIT(A) deleting this addition. And this ground is dismissed. Addition being false expenses and unexplained credit of money - Held that:- Disallowance has been made on the allegation that during the course of survey at the business premises of the assessee no evidence of any activity or the assets of the company was found. These expenses pertain to fixed assets and there was no justification for making this addition. The reasoning given by the AO is incorrect. As held in ground no. 2 the assessee is very much carrying on the business and this addition made by the AO is unsustainable. Further the addition of ₹ 6,76,299/- has been rightly deleted by the Ld. CIT(A). This was the loan given by the assessee in the preceding year and has been received back during the year. As regards the further addition of ₹ 8,48,803/- the same represents the creditors for the various services and expenses outstanding as on last day of the year. CIT(A) was correct in deleting these additions.
|