Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 1141 - AT - Income TaxAddition of excess stock - Addition in the hands of assessee during the course of survey - HELD THAT:- Fact remain undisputed that the alleged stock is part of business income and the fact that it has been confirmed by the ld. AO in his order also. However, it is judicially settled principle that only profit element in such excess stock should be brought under the purview of the tax. The gross profit rate and net profit rate disclosed by the assessee in the audited financial statements and also taking into consideration the submissions made the assessee is ready to offer 12% profit on excess stock and with a view to end of dispute between the parties sustained the addition on account of undisclosed stock @12% of undisclosed stock and partly allowed ground raised by the assessee. TDS addition on freight charges - violation of provisions of section 194C(7) - HELD THAT:- As in the case of ACIT vs Mr. Mohammed Suhail [2015 (2) TMI 1187 - ITAT HYDERABAD] specifically held that provisions of section 194C(6) is independent of section 194C(7) and just because there is violation of provisions of section 194C(7) disallowance of u/s 40(a)(ia) does not arise if the assessee complies with the provisions of section 194C(6) of the Act. We find that the assessee complies with the provisions of section 194C(6) disallowance u/s 40(a)(ia) does not arise just because there is violation of provisions of section 194C(7) of the Act - Authorities below are not justified in treating the expenses incurred by the assessee for freight charges as disallowable u/s 40(a)(ia) of the Act and adding back as claimed as expenses towards freight charges and such addition shall stand deleted. Appeal of the assessee is allowed.
|