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2012 (11) TMI 281 - ITAT AHMEDABADAddition on account of 'sundry creditors' and 'advance from customers' as deemed income u/s. 41(1) - Held that:- There is no dispute on this aspect that the total amount was shown as liability in the balance sheet and there is no credit in current year. In the light of these facts, we find that the provisions of Section 41(1) are not applicable because nothing has been brought on record to show that the liability in question has ceased to exist. Addition is therefore deleted - Decided in favor of assessee Addition u/s 68 treating cash sales as unexplained cash credits - cash sale is only on three dates in the year and not on other dates - Held that:- Claim of the assessee regarding cash sales under peculiar conditions that the assessee was discontinuing its business and therefore some sales were made in cash cannot be summarily rejected. It cannot be said that in the case of cash sales, the assessee is bound to keep record of the names and addresses of the buyers. Under these facts, ground of the assessee is allowed and addition made is deleted - Decided in favor of assessee
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