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2018 (5) TMI 1543 - AT - Income TaxDisallowance of expenditure regarding sundry creditors - bogus purchases - Held that:- assessee has duly purchased goods from the two parties involved, who are very old and reputed suppliers of publicity - accounts of the assessee are subjected to Statutory Audit under the Companies Act 1956, Statutory Tax Audit u/s 44B of the IT Act - no discrepancies have found in creditors in these audits - AO was adding amounts on the basis of then un-reconciled differences which is violation of the principles of natural justice - thus additions is directed to be deleted - decided in favor of assessee. Taxability of dividend - Held that:- dividend is exempt u/s 10(34) of the Act - assessee is entitled for a claim of deduction under Act if it is eligible for the same, even if the said amounts have not been claimed in the return of Income filed by the assessee - thus AO is therefore directed to verify the claim of this deduction - decided in favor of assessee.
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