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2016 (9) TMI 381 - ITAT INDOREAddition on account of undervaluation of closing stock - CIT(A) deleted the addition - Held that:- It is seen from the bills dated 30.3.2005 and 31.3.2005 that these contain purchases of hatching egg for the period from Ist March to 31st March and the eggs hatched upto 10th March are converted into broiler chicks which were already sold. Therefore, there remains the closing stock of ₹ 35,98,223/- as shown by the assessee in its audited books of accounts. Accordingly, we find the findings of the learned CIT(A) in order. - Decided against revenue Addition being the undisclosed purchases - CIT(A) deleted the addition - Held that:- We find that the Assessing Officer was not able to bring out any evidence that the entries in audited books of accounts were not correct. Moreover, the assessee himself will not show higher figure in the audit report. Therefore, we find that there is a typographical mistake in the audit report alone which cannot be made the sound basis for such addition. Therefore, the findings of the learned CIT(A) are upheld - Decided against revenue Disallowance u/s 40A(3) being 20% of total payment - Held that:- As noted that the payments were made in excess of ₹ 20,000/-. Therefore, we find no infirmity in the orders of the authorities below - Decided against assessee Addition u/s 40(a)(ia) of legal and professional expenses - TDS was not deducted - Held that:- No force in the submission of the learned counsel for the assessee as the total payment under the head “legal and professional charges” fell within the provisions of section 40(a)(ia) of the Act, hence, the disallowance confirmed by the learned CIT(A) is upheld.- Decided against assessee Disallowance on account of various expenses being telephone expenses, vehicle expenses, depreciation, travelling and conveyance expenses - Held that:- The assessee repeated the same arguments and vehemently argued that the disallowances were made without pointing out any specific defect or instance, hence such disallowance need to be deleted nned not to be accepted.- Decided against assessee
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