Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 336 - AT - Income TaxBooks of accounts rejected u/s 145(3) - disallowance of deduction u/s 80IC made holding that assessee was having machinery of ₹ 78758/- only and assessee has employed only 31 laborers but did not produce wages register. AO has to point out latent, patent and glaring defects in the books of accounts to invoke the provisions of section 145(3) of the Act. AO has further to show his satisfaction that the books of accounts are incorrect or incomplete. Each infirmity in the books of accounts does not empower the AO to invoke the provisions of section 145(3) of the Act. CIT(A) has also given valid reasons for allowing the claim of the assessee u/s 80IC of the Act. The ld Departmental Representative could not controvert the fact pointed by the ld AR that on similar facts the assessee was allowed deduction for Assessment Year 2008-09 and Assessment Year 2010-11. - Decided against revenue Addition on account of suppression of profits made through transaction with M/s. Trimurti Petro Chemicals and Allied services ltd. - Held that:- DR could not point out that if the deduction u/s 80IC of the Act is allowed to the assessee whether this addition would be tax neutral or not. Furthermore, in fact the other party would be chargeable to tax at a higher rate than whatever tax payable by the assessee on profits of her Dehradun unit. CIT(A) has given a reason that there is no loss to the revenue and there is no direct benefit to the assessee with respect to this addition. We also find that if any addition is made in the profit of taxfree units same will increase the reduction under respective section applicable to that unit. In view of this we do not find any infirmity in the order of ld CIT(A) in deleting the above addition wholly. Disallowance u/s 40a(ia) -non deduction of tds on job work charges - Held that:- The assessee has deposited the tax deducted at source on the full amount to M/s. KB Singh Enterprise in the month of June, 2009 i.e. before the due date of filing of the return of income for Assessment Year 2009-10. In view of this decision of the Hon'ble Delhi High Court in CIT Vs. Rajinder Kumar (2013 (7) TMI 454 - DELHI HIGH COURT) the ground No. 1 of the cross objection is allowed and AO is directed to delete the disallowance of ₹ 1185685/- u/s 40a(ia) of the Act. Disallowance u/s 14A - Held that:- CIT-A has restricted the disallowance of ₹ 305117/- as administrative expenses for earning exempt income and further ₹ 10000/- on account of donation expenditure which is not allowable. AR could not show us any infirmity in the order of the ld CIT(A) in restricting the above disallowance - Decided against assessee
|