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2020 (2) TMI 500 - AT - Income TaxBogus purchases - admissibility of additional evidence - HELD THAT:- As gone through the entire case records including order of AO and the order of CIT(A) and noted that only documents not produced by assessee was inward and outward register, which has already corroborated the purchases and sales supported by bills and invoices including challans and lorry receipts. Hence, in our view, we find that the CIT(A) has accepted the books of account because there was no defect pointed by the AO in the books of accounts and moreover, each and every details were produced by assessee before the AO during assessment proceeding, which was considered by CIT(A) in detail. Hence, we confirm the order of CIT(A) accepting the book results and this issue of Revenue’s appeal is dismissed. Addition u/s 41(1) stating that the liabilities still exists - HELD THAT:- We noted that even at the time of assessment proceedings the company was before BIFR for its revival and the revenue was aware of the BIFR proceedings as it had objected to the relief sought under the DRS by the company. The assessee has furnished complete party wise and age wise details of sundry creditors aggregating to ₹ 30,91,95,000/- and these were outstanding as on date and had not ceased to exist or were written off by the assessee. Hence, these were very much existing liability and cannot be treated as ceased under section 41(1) of the Act. Hence, we are of the view that the CIT(A) has rightly deleted the addition and we confirm the same. Carry forward and set off of unabsorbed depreciation beyond 8 years - HELD THAT:- This issue is squarely covered in favour of assessee and against Revenue by the decision of Hon’ble Gujarat High Court in the case of General Motors India (P). LTD. [2012 (8) TMI 714 - GUJARAT HIGH COURT] - Decided against revenue.
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