Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 1021 - ITAT JAIPURAddition made on the basis of the statement recorded u/s 132(4) - Held that:- The ingredient for retraction of statement made during the search, therefore, stand duly satisfied as the assessee is found to have made retraction within a reasonable time immediately after the copies of statement were provided to him. Since the documents found as a result of search were pertaining to the income of the other two persons namely S/Shri Praful Mittal and Murari Lal Mittal and there being no material or evidence on record to show that the appellant has carried any business outside the books for sale and purchase of medicines that could give rise to the income to the extent of ₹ 25 lacs, the addition merely on the basis of such statement which stood validly retracted could not have been made. We, therefore, find no factual or legal justification in sustenance of addition by Ld. CIT (A) in this regard. Addition on account of alleged excess stock of medicines found at the time of search - Held that:- . The inventory so found reveals that some of the medicines which were sample and had no value and also medicines with expiry which were to be discarded by the assessee have also been included in the list. The value thereof, could not be included for determining unexplained investment in stock. In this view of the matter, we set aside this issue to the assessing authority so that the assessee can demonstrate his claim for exclusion of value of such items of stocks for sustaining only the resultant addition, if any, as his undisclosed income. Disallowance of remuneration to the partners - addition on the ground that the interest income cannot be a subject matter of deduction under section 40(b) - Held that:- The perusal of material reveals that the amount of ₹ 31,711/- is a journal entry by which the assessee reversed the excess amount of bank interest charged. This has gone to reduce the expenses charged under the head Bank Interest and charges. The resultant income has also been assessed as income from business. This amount of ₹ 31,711/- is not shown to have been assessed as assessee’s income from other sources. We, therefore, do not find any justification in excluding such amount for making disallowance of ₹ 12,685/- under section 40(b) of the Act. Accordingly the ground raised in appeal stands allowed.
|