Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 838 - ITAT CUTTACKAddition made over and above the declared income – Addition made u/s 68 of the Act – Genuineness of the transaction – power of CIT(A) to enhance the income - Held that:- The cash availability with the firm was not to be doubted insofar as the source from where the cash was obtained was verified by the Assessing Officer when part of capital contribution was acceptable to the Assessing Officer to the extent of Rs.9.5 lakhs on the basis of identifying the loan creditors being another firm which was also partly on the basis of amount belonging to the said partner Shri Anil Kumar Chaudhury - this addition has been misinterpreted by the CIT(A) for confirming the addition on the basis of availability of cash in the hands of the firm which case was the introduction by the said partner on the availability of loan from the partner's wife and M/s.Aura Agency , another firm which the Assessing Officer had already verified – Decided in favour of Assessee. The cause for issue of notice u/s.251(2) for enhancing income in the light the CIT(A)having verified the cash book produced by the assessee to explain the payment of cash to the outgoing partners against their capital - there was never an occasion of incurring expenses without adequate cash balance was brought to the notice of the learned CIT(A) who held that this expenditure has been made out of undisclosed holding of cash be taxed in the hands of the assessee. Confirmation of excess income – Held that:- A reconciliation has been made not on hypothetical figure but the actual figures which are to be verified and it was not the case of the Assessing Officer that the credit for TDS claimed by the assessee was in accordance with the reconciliation which he accepted and that alone resulted in accepting the fact that the assessee had disclosed more receipts then were to be taxed not in accordance with the reconciliation - no income which has already been accepted to be taxed by the Assessing Officer can again be brought to tax merely because the assessee stands to gain for claiming reduction when the reconciliation is acceptable to the Assessing Officer – Decided in favour of Assessee.
|