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2021 (9) TMI 880 - AT - Income TaxBogus purchases - Addition of commission on notional basis - HELD THAT:- Similar, is the grounds in Assessment Year 2014-15 wherein purchases made from Sarvesh Mercantile Pvt. Ltd by assessee was added by Assessing Officer and confirmed by CIT(A) i.e. commission on the above purchases. Similarly, confirming the addition of commission on sales made by assessee to Ecoscapes International Pvt. Ltd on notional basis.Since, the facts and circumstances are exactly identical in these years also, respectfully following our finding in Para 6 of this order, we delete the addition of commission in these years also. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- This issue is covered by the decision of Hon’ble Supreme court in the case of Maxopp Investment Ltd. vs. CIT [2018 (3) TMI 805 - SUPREME COURT], wherein it is held that disallowance of section 14A read with Rule 8D of the Rules cannot exceed the exempt income claimed by assessee. Hence, we direct the Assessing Officer to restrict the disallowance to the extent of exempt income only. Hence, this common ground of the assessee in all the three appeals is partly allowed. Unexplained expenditure under section 69C - HELD THAT:- We have also gone through these nothings and as well as loose papers, which are indicative of incomings and outgoings but these notings does not indicate which amount pertain to which document and these are dumb notings. Even Revenue now could not controvert the above arguments, hence, we are of the view that addition made by Assessing Officer under section 69C is without any basis and hence, we delete the same. This issue of assessee’s appeal is allowed.
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