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2022 (10) TMI 685 - AT - Income TaxAddition u/s 68 - disallowance of unsecured loans from directors and promoters - CIT-A deleted the addition - HELD THAT:- On perusal of the Ld. CIT(Appeals) order, we observe that the unsecured loans from directors and promoters are all balances in the books of account as on 01.04.2012 and it was subsequently repaid on 12.04.2013 and there were no changes in unsecured loans in respect of directors and promoters during the year under reference i.e. FY 2012-13 relevant to the AY 2013-14. Therefore, we hold that there is no infirmity in the order passed by the Ld.CIT(A) in deleting the addition made u/s 68 of the Act. Grounds raised by the Revenue on this issue are rejected. Addition made u/s 41(1) in respect of outstanding sundry creditors - CIT-A deleted the addition - HELD THAT:- CIT(A) following the decision of the jurisdictional High Court in the case of Vardhaman Overseas Ltd. [2011 (12) TMI 77 - DELHI HIGH COURT] deleted the addition observing that consistent legal position is that an addition u/s 41(1) of the Act can be made only when the amount has been written off by the Appellant Company in its books of account. We do not see any infirmity in the order passed by the Ld.CIT(A) in deleting the addition made u/s 41(1) of the Act. Thus, we sustain the order of the Ld.CIT(A) and reject the grounds of Revenue on this issue.
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