Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (2) TMI 859 - AT - Income TaxUnexplained cash credit u/s 68 - assessee failed to discharge the onus explaining the increase in the unsecured loan amounts - difference of opening balance of unsecured loan and closing balance of unsecured loan - HELD THAT:- It is not a case of the AO that the assessee has taken bogus loan leading to invoking of section 68 of the Act and the loans from same entity has been treated as genuine in the preceding and succeeding assessment years, then the addition made by the AO u/s 68 has no legs to stand on the touchstone of provisions of section 68 - all required elements such as identity and credit worthiness of lender as well as genuineness of the transaction has been satisfied by the assessee then the loan received by the assessee during the relevant financial period cannot be treated as bogus or sham or non-genuine. Therefore, the ld.CIT(A) was right in deleting the addition on this count. Accordingly, ground No.1 of the Revenue being bereft of merit is dismissed. NP estimation - rejecting books of accounts - AO estimated @ 8% of the total receipts/turnover as 5% admitted by the assessee - HELD THAT:- We are in agreement with the conclusion drawn by the ld.CIT(A) that the AO was right in estimating the profits in absence of compliance from the assessee, but, there was no basis adopted for estimation of income u/s 144 of the Act @ 8% of total receipts/turnover. Disallowance of loss after rejecting books of accounts which have been restricted being 40% of total expenses - CIT(A) was right in disallowing the expenses @ 40% of the total expenses setting aside the estimation of net profit @ 8% of gross receipts which was calculated by the AO - CIT(A) was also right in allowing losses increased by the assessee during the relevant financial period and did not allow to be carried forward by holding that there is a substantial change in the management and control of the company. The above noted facts have not been controverted by the ld. Sr. DR in any manner. Revenue appeal dismissed.
|