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2018 (3) TMI 1517 - AT - Income TaxUnexplained cash credit under section 68 - AO treats the amount of sale as unexplained cash credit - Held that:- There can be several business transactions which have not been matured during the year under consideration but that cannot lead an inference of unexplained cash credit under section 68 of the Act. Accordingly, no adverse inference can be drawn against the assessee is such circumstances. Also the sugar comes under essential commodities Act and West Bengal sugar dealers licensing order 2009 and accordingly it regulated by State food & supply Department and enforcement branch. Therefore, we observe that the transactions made by the assessee are controlled by the Government of West Bengal. No infirmity has been reported by the State Government with the regard to the transactions carried out by the assessee during the year. It is undisputed fact that there is no dispute with regard to the Audited Balance Sheet, Books of Account, Sales Register, Purchase Register and Stock register. In view of the above and after considering the facts in totality we reverse the order of authorities below. Hence the grounds of appeal filed by the assessee are allowed. Addition in respect of motor car expenses including depreciation and telephone expenses on account of personal use of the assessee - Held that:- It is our settled provision of law that no expense can be disallowed on ad-hoc basis. From the order of the AO it is clear that the AO has not pointed out any specific details in the expenses claimed by the assessee which is personal in nature. In these circumstances, we are of view that the estimated disallowance is not sustainable in the eyes of law. Thus we delete the addition made by the lower authorities. - Decided in favour of assessee
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