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2019 (12) TMI 683 - AT - Income TaxAddition on account of unproved expenses - Lack of response from the creditors/purchase party - HELD THAT:- CIT(A) has considered all the aspects and dimensions of the issues including the detailed reconciliation and explanation by the assessee. CIT(A) has specifically noted that the addition can not be made for lack of response from the creditors/purchase party and more so when the assessee was called upon to explain the balance standing in the credit of a party at the last moment by providing details and books of suppliers on whom the assessee has no control. Under these facts and circumstances, we are in agreement with the conclusion of CIT(A) that disallowance is uncalled for. Accordingly, we uphold the order of CIT(A) by dismissing the ground raised by the Revenue. Addition of income representing unaccounted production - assessee is engaged in the business of production of bread for Britannia Industry Ltd. on contractual basis. The entire raw material is supplied by the Britannia Industry Ltd which go into the manufacturing processes - HELD THAT:- In this case the addition was primarily based upon the excess consumption of fuel to the extent of 24638 litters. We observe that the assessee was contract manufacturer of Britannia Industry Ltd. and was operating under the direct control and supervision of Britannia Industry Ltd. and was not allowed to do or manufactured bread for any other outside party. We also note that the excess consumption of fuel was within the standard norms as has been observed by CIT(A) by comparing the actual and standard consumption in the preceding and succeeding year and came to the conclusion that the estimation of unaccounted sale on the basis of excess consumption of fuel is wrong and against the provisions of the Act. We are quite convinced with the conclusion drawn by the Ld. CIT(A) on this issue as the AO has made addition on hypothetical basis not appreciating the facts in correct perspective. Accordingly, we are uphold the order of ld CIT(A) by dismissing the ground raised by the revenue.
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