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2015 (4) TMI 11 - HC - Income TaxRevision u/s 263 - CIT held that the assessment order was erroneous and prejudicial to the interest of the Revenue in as much as the unproved, unsecured loans, sundry creditors, expenses have been accepted and the income had been under-assessed to that extent - Held that:- No question of law arises in this matter. The ITAT has considered the issues, essentially on facts, in coming to the conclusion that the order of the CIT is not sustainable. It is sufficient to refer to some of the aspects regarding the impugned order passed by the ITAT. The ITAT noted that the fall in gross profit was examined by the Assessing Officer. The respondent/assesses' reply was considered. The volume of work had fallen during the year. As a result thereof, the profit had also decreased. Further, the profit had decreased only by less than a quarter percent. Even thereafter, the ITAT had come to the conclusion that the insignificant fall in the gross profit cannot lead to the conclusion that the assessment order was erroneous. As far as the loan and security in respect thereof was concerned, the ITAT noted that the certificate from the Bank was on record. The Bank statement was also produced by the respondent before the Assessing Officer and before the CIT. Based on the material produced, the ITAT noted that merely because there may be excess cash at a particular point of time, it does not follow that the respondent cannot raise a bank loan. In view of the nature of the respondent's business, namely, the construction business, the ITAT came to the conclusion, based essentially on facts that it was possible that the stock register was not maintained. Similarly, as regards the sundry creditors made possible in the current financial year, it was noticed that there was opening credit in the balance of the assessee and the copy of the accounts of the assessee was there in the books of M/s Garg Sales and thus, no adverse inference could be taken on the said account. - Decided against revenue.
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