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2014 (5) TMI 392 - ITAT AHMEDABADDeletion on account of unproved sundry creditors – Held that:- The amounts were all opening balances and during the year under appeal no amount was credited in the books of account – the credited balances were not written off - it was found that there was variation in balances of those parties from 2004-05 to 2008-09 which clearly indicate that these sundry creditors were alive – CIT(A) was of the view that the credit amounts can neither be treated as cessation of liability u/s. 41(1) nor can be added u/s. 68 of the Act – the order of the CIT(A) is upheld – Decided against Revenue. Disallowance of salary and wages – Proper check over the expenses – Held that:- CIT(A) was of the view that there is no need to make any addition on ad-hoc basis on the account simply stating that reasons that the vouchers were not made by the party – there was no infirmity in the finding of CIT(A) while allowing disallowance made by AO – Decided against Revenue. Addition of unexplained amount – Held that:- CIT(A) was of the view that the assessee was of the view that the difference was not on account of cessation of liability, it will not fall u/s 41(1) of the Act - no other section can bring such differences into tax since the amount of difference was a balance-sheet item and not debited to profit and loss account at any earlier point of time - it was not excess money received by any party but it was excess money paid and since assessee has not made any claim to these expenses, this addition was not called for - thus, there was no infirmity in the order of the CIT(A) – Decided against Revenue.
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