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2018 (4) TMI 1060 - AT - Income TaxAddition being a loan claimed to have been received from one Mrs. Kamala N. Katri - undisclosed income - Held that:- It is an admitted position that Trial Balance as on 31.03.1982 of Mrs. Kamal N. Katri, available with the Department, clearly reflected assessee as a debtor for ₹ 35,000/-. Hence it is of the opinion that the addition that could have been made was no more than ₹ 55,000/-. Assessee had also filed a confirmation which was not found to be bogus. In such circumstances, direct AO to restrict the addition to ₹ 55,000/-. Ground of the assessee is partly allowed. Additions being credits in bank account - Held that:- It is of the opinion that presumption u/s.132(4A) of the Act could have been taken only against person who was searched. The bank account Nos. 578 and 490 with Canara Bank, Broadway Branch, Chennai were not impounded from the premises of the assessee. Assessee had along denied opening or operating these accounts. The additions if at all it could be made, was only in the hands of Shri. N.K. Mohnot and not the assessee. Additions for credits in these bank accounts could not have been made in the hands of the assessee. Such additions stands deleted. Ground of the assessee is allowed. Addition of repayment received from debtors - Held that:- It is not disputed by the Revenue that M/s. Balaji Plastic and Metal Enterprises had paid ₹ 10,000/- and Shri. R.N. Subramanian had paid ₹ 50,000/- to the assessee during the relevant previous year. These debtors were recorded in the books of the account of the assessee. Assessee had mentioned in a letter to the ld. Assessing Officer that the date of receipt was mistakenly recorded due to errors committed by its accountant. There is no case for the Revenue that the receipts if recorded on the correct dates would have resulted in any deficit cash in the preceding months. The addition ought not have been made just for an error committed in the date of recording the actual receipts from the debtors. The factum of receipts were not doubted, and the year of receipt was also the same. - Decided in favour of assessee. Addition being a credit standing in the name of one M/s. Hindusthan Electronics - Held that:- Books of accounts of a proprietory concern is different from the books of accounts maintained by the proprietor. Just because, the latter did not have the name of the concern would not mean that the concern as such did not exist. No cogent reason was given by the lower authorities for disbelieving the credit and confirmation. Addition stands deleted. Addition under the head “undisclosed income’’- Held that:- Trial Balance of the assessee as on 31.03.1982, filed alongwith its return for assessment year 1982-83 do show M/s. Prakash Textile as a debtor for ₹ 50,200/- and Rajlakshmi Paper Company as a debtor for ₹ 10,000/-. This has not been disputed by the Revenue. When a debtor repays the loan, it is not akin to a fresh credit. A person who is receiving, refund of debt cannot be fastened with an onus to prove the source of the debtor. Assessee had shown ₹ 60,200/- as opening debtors in the name of M/s. Prakash Textile and Rajlakshmi Paper Company. Repayment to this extent could not have been disbelieved. Therefore restrict the addition to a sum of ₹ 20,000/-. Addition to the extent of ₹ 60,200/- stands deleted. Addition for unexplained credits - Held that:- AO could not have considered the credits to be not genuine. However, in the case of Uma Enterprises and D.R. Enterprises confirmations filed by the assessee did not give any details regarding their assessment circle. Nor was their PAN were available. The confirmation letters in respect of Uma Enterprises and D.R. Enterprises were rightly rejected by the lower authorities. Therefore delete addition pertaining to Pradeep M. Shah, Kamal H. Shah and M. Gulab, while sustaining the balance addition. Grounds 2 & 3 of the assessee are partly allowed.
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