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2012 (7) TMI 649 - AT - Income TaxRestricting trading addition to Rs. 997 - applying the G.P. rate @ 2.3% - Held that:- No justification for applying GP rate of 2.3 % in this case in the absence of any specific defects in the books of accounts. The only difference is of Rs. 998 and therefore trading addition of Rs. 997/- is justified, but the remaining addition by applying GP rate of 2.3% is not justified - partly in favour of assessee. Addition on account of interest income - Held that:- Addition without proper examination of the facts by AO as intimated by appellant the sum of Rs. 7,72,314/- is the net figure of interest paid and received from various parties and includes interest received from Indusind Bank & ITC Ltd. Complete details of interest account are available in the ledger of appellant which has not been considered by A.O -direction to delete the addition - in favour of assessee. Addition on account of commission received from IDEA Telecommunication Ltd. and IDEA Cellular - Held that:- As the commission or brokerage received by assessee from Idea Cellular has already been shown - on examination of necessary evidences by Ld. CIT (A) it was found that the AO has made the addition without applying mind or without understanding accounting system followed by assessee consistently - in favour of assessee. Addition on account of bogus unsecured creditors - Held that:- CIT (A) has ascertained the factual aspects that due to clerical error, postings were made in the wrong name. However, they were rectified. Only thereafter the additions were deleted by Ld. CIT (A) - in favour of assessee. Addition on account of winning from Lottery - Held that:- As AO himself had made enquiry u/s 133(6)from ITC Ltd. regarding this payment and the company confirmed payment of performance incentive to the assessee as well as to other parties of Rajasthan on the basis of turnover achieved by them. Therefore, CIT (A) found that there is no winning from lottery or from puzzle as this is a regular income which has already been accounted for by the assessee in its accounts book - in favour of assessee. Addition on account of income of M/s. Aman Enterprises - Held that:- This addition has been made by A.O. without properly verifying the facts as per ledger account of appellant, total interest of Rs. 37,89,273 is paid. This amount is inclusive of sum of Rs. 11,80,780/- paid to M/s Aman Enterprises. Therefore observation of A.O. that appellant paid interest to this party without recording the same in his books of accounts is factually incorrect - - in favour of assessee.
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