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2015 (1) TMI 774 - ITAT AHMEDABADSuppression of sales - CIT(A) deleted the addition - Held that:- production in the month of February was lesser as compared to the month of July and so was the consumption of electricity. Assessing Officer failed to appreciate the very basic that production could not be consistent in all months. In principle, Assessing Officer accepted the variation to reach the conclusion that monthly variation could not be in excess of 20-30%, her action of reducing the total production figure by 30% to arrive at suppressed sales is devoid of logic. In view of this, CIT(A) was justified in deleting the addition made by Assessing Officer after rejecting the books account. This reasoned factual finding of CIT(A) needs no interference. - Decided against Revenue. Understated agricultural expenses - CIT(A) restricted the addition to ₹ 13,714 out of Rs, 78,000/- - Held that:- Total expenses inclusive of expenses of ₹ 8,50,305/- incurred by assessee and his brothers were worked out to ₹ 11,32,229/- resulting in net agricultural income in the hands of land owners of ₹ 19,03,972/-. The total expenditure of ₹ 11,32,229/- represented 37.29% of gross agricultural receipt of ₹ 30,26,200/-. CIT(A) held that reasonable expenses incurred on any agricultural activity would constitute 40% of total agricultural receipt. In case of assessee, the percentage was 37.29 which meant that there was still a gap of 2.71%. i.e. assessee had understated the expenditure to the extent of ₹ 82,281/-. Assessee's l/6th share worked out to ₹ 13,714/-. Accordingly, addition was limited to that extent. - Decided against Revenue. Unexplained investment u/s. 69B - CIT(A) deleted the addition - Held that:- Reasoned factual finding of CIT(A) needs no interference from our side. We uphold the same because the said provision of Section 50C of the Act was not applicable at relevant point of time and provides that valuation made by Stamp Valuation Authority is to be deemed as consideration received by seller. Accordingly, order of CIT(A) on the issue is uphold. - Decided against Revenue. Unexplained cash credit - CIT(A) deleted the addition - Held that:- Assessee had furnished all relevant details including confirmation letters showing complete addresses of the creditors. Instead of conducting any inquiry of his own by issuing summons etc, Assessing Officer simply chose to add the cash deposits in the bank account of creditors in the hands of the assessee. He completely ignored the fact that loans had been repaid during the year by cheques and this was evidenced by bank statements/pass books of the creditors. In other words, they no longer appeared as outstanding unexplained in the hands of assessee. In such circumstances, additions were not justified and they were rightly deleted by CIT(A). - Decided against Revenue.
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