Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 41 - ITAT AHMEDABAD

2016 (1) TMI 41 - ITAT AHMEDABAD - TMI - Determination of taxable income - Best Judgment Assessment u/s 144 - disallowance of depreciation and sundry creditors - Held that:- CIT(A) has restored some of the issues to the AO for verification and allowance to the assessee, particularly with respect to set off of brought forward loss. In the grounds of appeal extracted (supra), the Revenue has pleaded that the ld.CIT(A) has upheld the depreciation of ₹ 1,49,07,251/- but in the computation of i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cannot be any ad hoc disallowance out of these items. This appears to us that though the assessment was framed under section 144 of the Income Tax Act, according to the best judgment of the AO, but the AO failed to collect details by exercising his power in order to determine the fair income of the assessee. He ought to have looked into the earlier and subsequent years details available with the department before determining the income of the assessee. While he considering all these aspects, we .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

JUDICIAL MEMBER: The Revenue is in appeal before us against the order of the CIT(A)-I, Surat dated 26.4.2012 passed for the Asstt.Year 2009-10. 2. The appeal was posted for hearing on 28.8.2012. None appeared on behalf of the assessee. Therefore, fresh notice was issued on 26.10.2012. Shri R.C. Jain, ld. Counsel for the assessee appeared and hearing was adjourned. Thereafter, the assessee moved an application for adjournment which was also allowed. However, on the date of hearing i.e. 16.9.2015 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

IT(A)-I, Surat has erred by estimating assessee income @ 50% of gross profit & thereby deleting the various additions made by the A.O. on account of various expenses @ 20% as the assessee did not submit any proof. [3] On the facts and circumstance of the case and in law, the Ld. CIT(A)-I, Surat has erred by allowing depreciation of ₹ 1,49,07,251/- which the A.O. had added for want of any evidences [4] On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have uphel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.2009 declaring Nil income after setting o brought forward losses details of the same is as under: Loss as per profit and loss account Rs.(-) 46,37,530/- Add: Depreciation Considered separately Rs.1,49,07,251/- Add: Disallowance u/s.40(a)(i) Rs.1,09,94,145/- Total Rs.2,12,63,866/- Less: Depreciation as per Income Tax Rs.62,95,561/- Rules Total Income Rs.1,49,68,305/- Less: Set off of brought forwarded losses of AY : 2005-06 to the extent of current year income Rs.1,49,68,305/- Taxable Income Rs. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

7; 28,54,867 vi. Depreciation of ₹ 1,49,07,251/- 6. Dissatisfied with the determination of the income at ₹ 1,95,08,550/-, the assessee went in appeal before the CIT(A). The ld.CIT(A) has decided the appeal of the assessee by observing as under: 8. The case records were also requisitioned from the Assessing Officer during appellant proceedings. From perusal of the same, it is noticed that there was no compliance by the assessee in response to any of the notices issued by the Assessing .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of E. return from which following facts are noticed on the credit side of the Profit & Loss Account :- a] Sales /gross receipts ₹ 2,46,12,599 b] Profit on sale of assets ₹ 47,24,925 c] Closing stock ₹ 53,460 On the debit side, the following expenses have been shown :- 1. Opening stock ₹ 53,460/- 2. Power &fuel ₹ 55,31,083/- 3. Rent ₹ 99,03,860/- 4. Repair to machineries ₹ 1,88,595/- 5. Salary and wages ₹ 4,27,771/- 6. Telephone expenses  .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

However, in the schedule of computation of total income the profit and gains from Business have been shown at ₹ 1, 49, 68, 305/- against which, brought forward loss of ₹ 1, 49. 68, 305/- has set off showing the returned income at NIL. This means that from the loss of ₹ 46,45,910/- a profit of ₹ 1,49,68,305/- has been arrived at after making some adjustments of admissible / non - admissible items, the details of which are not available. Therefore, the Assessing Officer sho .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ous additions / disallowances . The assessing officer has also disallowed 20 % on sundry creditors However, there is no provision for estimated disallowances out of sundry creditors. It is also not known whether these sundry creditors are part of opening balance in which case, no disallowance can be made in the current year or the same are part of current year, in which case, the disallowance can be taken care of by disallowance out of expenses. Therefore, the addition of ₹ 18,41,997/- is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gross receipts shown at ₹ 2,46,12,599/-. Therefore, the total income of the appellant is taken as 50% on this amount i.e. ₹ 1, 23,06,299/- The assessing officer himself allowed set off of loss / depreciation to the extent of ₹ 87,59, 467/- on the basis of assessment order for Asstt Year 2008-09. Therefore, the total income assessed by the Assessing Officer is reduced to ₹ 35,46,833/-. (Rs 1,23,06,299 - ₹ 87,59,467/-) This ground of appeal is therefore, partly allow .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ellant has been estimated. Moreover, depreciation claim even otherwise is not verifiable. 11. Ground No. 6 11.1 This ground is related to set off brought forward losses for Asstt Year 2005-06 of ₹ 2,23,11,126/- This matter pertains to section 154 of the IT Act and the Assessing Officer may grant set off brought forward loss/ depreciation as permissible under the Act on the basis of records available with the I T Department. 12. In the result appeal is partly allowed. 7. With the assistance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version