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2016 (4) TMI 852 - AT - Income TaxReceipts in cash from the allottee newspapers and periodicals - Estimation of income - rejection of books of accounts - Held that:- We find that the assessee had shown receipts in cash from the allottee newspapers and periodicals, it does not mean that the assessee himself was selling the newsprints in cash in unauthorized market. The assessee produced copies of ledger accounts of these parties. The said ledger account was seized during the course of search. On perusal of ledger account of these parties it is observed that the newsprint was supplied to them and payment was also received by the assessee. The said ledger account clearly mentioned the authorization number and date, date of receipt, size of paper, number of reels, weight, number and date of memo of delivery and amount etc. Hence, we are of the view that it cannot be said that either these parties did not make the payment to the assessee or did not lift the newsprints. Therefore, on the basis of 3-4 parties out of about 200 allottees, the adverse inference cannot be drawn in the hands of assessee. In the case of assessee, he had maintained proper books of account and there is no material on record to show that the he had made sale of newsprints in unauthorized market. Hence, the books of account of the appellant cannot be rejected by invoking section 145(2) and the turnover/profit cannot be estimated. In view of above, in the absence of any evidence of selling the newsprints in unauthorized market by the assessee, the CIT(A) had rightly held that the AO was not justified in rejecting the books of account and estimating either the turnover or the profit of the assessee for the year under appeal. Accordingly, we confirm the order of CIT(A) - Decided in favour of assessee Unexplained cash credit - Held that:- CIT(A) after taking loan confirmations and other documents deleted the addition respect to loan creditors to the extent of ₹ 86,000/- in the names of Shri Balsinger Singh, Shri A. K. Mullick, Shri S. K. Mullick and Shri Biman Behari Saha. In respect to loan creditor M/s. Mamoni Films of ₹ 7,00,000/- there is a categorical finding recorded by CIT(A) that the loan pertains to AY 1988-89 and not to the relevant AY 1987-88. Once this is the position, the same was confronted to Ld. Sr. DR whether he has some material to controvert the same, he could not reply. In such circumstances, we are of the view that CIT(A) has rightly deleted the addition in respect to cash credits and we confirm the same - Decided in favour of assessee Addition u/s 68 - Held that:- We have heard rival submissions and gone through facts and circumstances of the case. We find that the entire addition is based on a provisional order passed u/s/. 132(5) of the Act estimated the income of the assessee and by virtue of which holding that M/s. Industrial Papers was benami of the assessee instead of Shri Ram Balak Singh. No doubt certain books and documents of Shri Ram Balak Singh were found from the premises of the assessee but it does not prove that this business belongs to assessee or assessee is benamider of the same. The onus is on revenue to prove that the assessee is benamidar of the Industrial Papers. In view of the above, we are of the view that the CIT(A) has rightly deleted the addition and we confirm the same - Decided in favour of assessee
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