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2020 (2) TMI 922 - AT - Income TaxAddition on account of creditors - HELD THAT:- As informed by AO of the alleged creditor while transmitting the Balance Sheet and the list of sundry creditors, that the name of the assessee was not to be found in such list. Further, the inspector who tried to locate the premises of M/s, Mahavir Forging (P) Ltd could not find such an entity at the given address. He was informed that such building was used as residence by its previous owner three years back and no company like M/s Mahavir Forgings had ever located in that premises. Further, on downloading the Balance Sheet filed with the letter from the ROC site, it was found that it was not signed by auditor or Director of the company, leading to the inference that the assessee was misusing name of some assessee to show bogus corridor in its books of accounts. There is no proper explanation from the assessee in respect of these reasons recorded by the learned Assessing Officer to draw the inference that the transaction is a bogus one. In the absence of any material touching on the aspect, we are of the considered opinion that the Ld. CIT(A) is justified in confirming the addition. There are no reasons warranting interference with the same. Disallowance of expenses - Assessing Officer who is the first authority directly dealing with the assessee and its business details had taken a view that 25% of the expenses should be disallowed. To take any contrary view or to modify it, there shall be some material before us or some acceptable explanation from the assessee. Since the assessee had not taken sufficient precaution for prosecution of the case on merits, we find it difficult to interfere with the discretion of the learned Assessing Officer. We, therefore, uphold the same. - Decided against assessee.
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