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2015 (7) TMI 207 - AT - Income TaxAddition in the Trading Account - books of accounts not rejected - Held that:- In the present case, it is an admitted fact that the AO worked out the figures of sales by adding the Gross Profit in the figure of the sales shown by the assessee. However, he had not rejected the books of accounts and also accepted all other components of the Trading Account i.e. the opening & closing stock and the purchases & Gross Profit. He only doubted the sales figure which was worked out by him by adding the Gross Profit separately in the sales disclosed by the assessee. It is an admitted fact that the sales value always includes the profit which cannot be added again for working out the figure of the sale. In our opinion the AO was not justified while adding the Gross Profit again in the sales already disclosed by the assessee and in making the impugned addition. In the present case, it is also noticed that the AO neither rejected the books of accounts by invoking the provisions of section 145(3) of the Act nor pointed out any inflated purchase or suppressed sales. He also did not doubt the method of accounting consistently followed by the assessee, therefore, the impugned addition made by the AO and sustained by the ld. CIT(A) was not justified. Accordingly, the same is deleted. - Decided in favour of assessee. Disallowance on account of TDS deducted from the supplies made - Held that:- In the present case, it appears that the assessee could not furnish the relevant details before the authorities below regarding the inclusion of the receipts amounting to ₹ 77,78,724/- in the total sales of ₹ 2,29,42,663/-. It also appears that the certificate issued by the East Central Railway, Hajipur relating to wrong deduction of the TDS was not considered by the AO as well as by the ld. CIT(A). We, therefore, deem it appropriate to remand this issue back to the file of the AO to be adjudicated afresh in accordance with law. We also direct the AO to verify as to whether the total receipts of ₹ 77,78,724/- from the Railway had been included by the assessee in the gross sales and the TDS was wrongly deducted, if the aforesaid facts as claimed by the assessee were found to be correct then no addition is called for. Accordingly, this issue is set aside to the file of the AO. - Decided in favour of assessee for statistical purposes. Disallowance out of interest paid to the partners - Held that:- In the present case, it appears that the assessee had not adjusted the amount of loss in the capital account of the partners, only on that basis, the AO considered that there was debit balance in the partners capital account. In the present case, it is also noticed that the assessee was having opening balance in the partners capital account at ₹ 22,08,021/- and even if loss amounting to ₹ 12,26,144/- was to be adjusted, there was no debit balance in the partners capital account. In the instant case, the assessee claimed that no interest was paid to anyone except to the bank from whom loan was raised for the business purposes. However, it appears that the said fact was not examined by the AO or by the ld. CIT(A). We, therefore, in the absence of clear facts on record, deem it appropriate to set aside this issue also fact to the file of the AO to be adjudicated afresh in accordance with law, after providing due and reasonable opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes.
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