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2019 (7) TMI 746 - ITAT GUWAHATIAddition of unexplained sundry creditor and loan - shown under the head current liabilities and provisions - addition based on preponderance of probability - loan taken from a credit institution - HELD THAT:- As the said sum of ₹ 1,70,73,828/- was a mere outstanding amount against purchase and hence, provisions of section 69 of the Act do not come into play, inasmuch as the purchase recorded in the accounts were not disputed. The amounts outstanding were shown in the balance sheet as 'Current Liabilities' as on 31-03-2009. When the ledger account of the Loading & Unloading Expenses on Purchase and Truck Freight on Purchase were produced which showed that the entire series of transactions were genuine since without these expenses the purchases could not have materialized and the subsequent sales could not have taken place. However, the Ld. Assessing Officer did not make any enquiry in respect of the information provided to him and accordingly, his finding in this respect is totally without any basis. - Impugned addition made under the head "Current Liabilities" by the Ld. AO has been rightly deleted by ld CIT(A). In the instant case, AO could not bring on record any conclusive evidence, except hazarding the observation that the assessee was unable to provide the statement of the secured loan transactions to bring in the charge of undisclosed investment. Assessee has named the credit institutions where from he received such loans to stand testimony to their irrefutable and impeccable character. Conclusion reached by AO was based on subjective perceptions of surmise and conjecture and the findings rendered therein and were not in consonance with the facts and CIT(A) acted aptly by considering appropriate factors absolutely germane to the issue in applying the settled parameter by deleting the impugned addition. That being so, we decline to interfere the order passed by the learned CIT(A), hence, his order on this issue is hereby upheld and the grounds of appeal raised by the Revenue is dismissed. Addition based on estimating the net profit @ 1% - HELD THAT:- Respectfully following the judgment of the Coordinate Bench in the assessee`s own case for AY 2008-09, we direct the Id. AO to determine the net profit of the assessee from M/s S.M .Enterprises at 0.80% and rework the taxable net profit accordingly.
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