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2020 (1) TMI 453 - AT - Income TaxBogus expenditure - AO did not find the explanation of the assessee as convincing and stated that the assessee has not furnished any documentary evidence on which reliance could be placed such as any copy of agreement signed between the parties or any such other document which has not been prepared by the assessee company on its own - CIT(A) observed that the two invoices in question do not represent expenses, but rather represent income and deleted the addition - HELD THAT:- Assessee admitted to have received the amounts covered by the invoices. There is no comment on the books of accounts of the assessee by the learned Assessing Officer, but according to the learned Assessing Officer there is no document which has not been prepared by the assessee company on its own in support of the contentions of the assessee. It is also an admitted fact that the party who paid the sums to the assessee have deducted TDS on such amounts as reflected in form AS-26. These receipts of the assessee, as observed by the Ld. CIT(A), are reflected in the books of accounts of the assessee. Finally, learned Assessing Officer was of the opinion that the bogus expenses booked and such bogus expenses were to be disallowed. On this premise learned Assessing Officer added the receipts of ₹ 2,61,56,545/-to the income of the assessee. It is, therefore, clear that the Assessing Officer is not sure whether he was adding the income or disallowing the expenses. It is not that the assessee claimed the expenses to the tune of ₹ 2,61,56,545/-which the learned Assessing Officer wanted to disallow. In view of the fact that the veracity of the agreement between M/s Vivek Pharmachem and the assessee needs to be verified by the learned Assessing Officer, as submitted by both the counsel, we are of the considered opinion that this is a fit matter to set aside the impugned order and to remand the issue to the file of the learned Assessing Officer for verification of the agreement and to reach a right conclusion - Appeal of the Revenue is allowed for statistical purpose.
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