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2023 (2) TMI 221 - AT - Income TaxAddition u/s 68 - unexplained cash credit for non fulfilling the conditions thereof - CIT-A deleted the addition - HELD THAT:- The assesse has furnished all the evidences proving identity and creditworthiness of the investors and genuineness of the transactions but AO has not commented on these evidences filed by the assessee. AO simply harped on the non production of managing directors of the share subscribing companies to make the addition which is not correct. CIT(A) has passed a very reasoned and speaking order discussing all facts and satisfaction of all the ingredients of section 68 of the Act while allowing the relief as stated above - we are inclined to uphold the order of Ld. CIT(A) by dismissing ground no. 1 of the revenue. Employee benefit expenses and other expenses - Disallowance of expenditure to the tune of 20% - CIT(A) restricted such expenditure to the tune of 10% - HELD THAT:- We have noticed that the assessee company has submitted its copy of audited profit & loss account before the ld. AO and the ld. AO without giving any reason disallowed the expenditure to the tune of 20% on account of employee benefit expenses and other expenses. Therefore, such disallowance made on estimated basis without any cogent reason for the same shall be unlawful and prejudicial to the interest of assessee and while considering this aspect, the ld. CIT(A) has rightly decided the issue by disallowing the expenditure to the tune of 10% in the hands of assessee. As such we do not find any infirmity in the order passed by the ld. CIT(A) - Decided against revenue.
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