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2022 (11) TMI 725 - AT - Income TaxAddition u/s 68 - assessee not established the identity, creditworthiness and genuineness of the transactions - HELD THAT:- Assessee has established the identity, creditworthiness and genuineness of the transactions by submitting all the details such as confirmation cum contra account the name, address, PAN details, I.T. Return, balance sheet and profit and loss account, audit report, bank statement etc. From the perusal of the record it can be seen that no loans has been taken by the assessee during the year under consideration but it was the opening balance as on 01.04.202013 which was carried forward and thus, the genuineness of cash credits were established by the assessee. The CIT(A) has given a detail finding and there is no need to interfere with the same. Ground No. 1 of Revenue’s appeal is dismissed. G.P. addition - HELD THAT:- As assessee has duly furnished all the details to establish the correctness of the books of accounts and also furnished ITR, Audit Report, balance sheet and Profit & Loss Account. The detail of G.P. ratio and N.P. ratio for last three years also was shown to the Assessing Officer. It is pertinent to note that the Assessing Officer while rejecting the books of accounts has not recorded any proper satisfaction/reasons and therefore, the rejection of books of accounts was not justifiable. The G.P. and N.P. rate was prejudicially decrease in the present year but the turnover has increased and therefore, the same was rightly accepted by the CIT(A). Hence, Ground No. 2 of Revenue’s appeal is dismissed.
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