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2023 (4) TMI 382 - ITAT DELHIUnexplained business income - credit of this amount in the account of sundry creditor was a fictitious liability - HELD THAT:- There it was a running account between the assessee and sundry creditor and all payments have been made through cheques and at the end of financial year 2007-08 there was a balance which was picked up by the AO for making addition in the hands of the assessee. As clearly revealed that the said amount was brought forward by the assessee as opening credit balance to sundry creditor and on 31.03.2009 the account was tallied and no balance was left. Ledger account of sundry creditor clearly show that the assessee has made payments to M/s Stambh Engineers through banking channel after deducting TDS and WCT and such transactions cannot be doubted in any manner. AO made addition in the hands of the assessee without any justified basis and reasoning and without bringing out any positive adverse material against the assessee to establish that the liability was fictitious. AO is directed to delete the addition. Decided in favour of assessee. Addition of depreciation as the fund towards some other income on which the assessee has earned 20% - HELD THAT:- We are unable to see any positive or adverse finding against the assessee on this factual aspect that no depreciation has been claimed by the assessee on the capital work-in-progress which also includes the transactions noted by the ld.CIT(A). Disallowance of depreciation has been made solely on the allegation that the assessee has claimed excess contract payment towards the addition to building. But, there is no findings of the authorities below that the assessee has claimed some depreciation thereon. In such a situation, the disallowance of depreciation on the baseless allegation that the amount pertaining to the depreciation disallowed was the funds towards some other income on which the assessee has earned 20%. When the assessee has not claimed any depreciation, then, no disallowance can be made in the hands of the assessee on this account. AO is directed to delete the addition. Grounds of the assessee allowed.
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