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ACIT, Circle-1, Meerut Versus Dharma Pal Khanna

2016 (1) TMI 1077 - ITAT DELHI

Addition on account of house property income - CIT(A) deleted the addition - Held that:- The assessee has produced all the information and all the relevant documents before the Assessing Officer related to the property and established that the assessee was using the said property as its business office. Therefore, the CIT (A) has rightly deleted the addition made by the Assessing Officer. - Decided against revenue

Addition of sundry creditors - Held that:- When the Assessing Officer h .....

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The assessee was not in a position to file confirmation but he has given all the relevant details as relates to the assessee’s details of the creditor in respect of giving PAN No to the Assessing Officer as well as given the details as to how the creditors are on account of freight paid the same was even from ledger account of R. K. Jindal and thus nearly not finding confirmation will not amount to be adding the same addition by the Assessing Officer. In view of this, the assessee has establishe .....

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n the facts and circumstances of the case, the Ld. Commissioner of Income Tax(Appeals) has erred in deleting the addition of ₹ 2,45,280/- made by the A.O on account of house property income ignoring the fact that assessee failed to furnish any document for the relevant period in support of its contention that the flat was being used for the purpose of its business and income from house property is being assessed as per provisions of Section 23(1) of the I.T. Act, 1961. 2. Whether in the fa .....

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mmissioner of Income Tax(Appeals) has erred in deleting the addition of ₹ 4,09,664/- made by the A.O on account of unexplained creditors in spite of the fact that assessee failed to file the confirmation even after availing sufficient opportunities. The onus was certainly upon the assessee to prove the credit appearing in its books which remained totally undischarged. Reliance is placed on the following judgments:- 3. The assessee is doing the business of Transportation through own as well .....

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he A.O held that assessee failed to furnish any document for the relevant period in support of its contention that the flat was being used for the purposes of its business and made addition of ₹ 2,45,280/ as the income from house property. The Assessing Officer further made disallowance on account of tanker expenses for ₹ 3,87,748/- and salary expenses for ₹ 2,37,826/-. The Assessing Officer also made addition on account of unexplained sundry creditors for ₹ 5,58,883/-. 4 .....

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es relating to business from this address. In view of this, the CIT (A) hold that Noida Flat was used for business purposes and addition is unwarranted and accordingly deleted the same. As relates to disallowance of tanker expenses, the CIT(A) held that the disallowance could not be justified merely because some vouchers were not produced when the books are audited and the auditors have vouched the expenses and deleted the addition. As relates to disallowance of salary expenses, the CIT (A) did .....

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r. The CIT(A) further held that besides issuing a letter u/s. 133(6) of the Income Tax Act, 1961, the A.O did not take any further steps to enquire into the creditors. The CIT(A) further observed that the assessee made TDS out of payments and the assessee showed the credit plans which was paid in the next financial year. Therefore, this addition u/s 68 was deleted by the CIT(A). 5. The Ld. DR submitted that the Assessing Officer rightly made addition of ₹ 2,45,280/ as the income from house .....

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Assessing Officer through various documents but the same was ignored by the Assessing Officer. Disallowing only on the ground of non-production of vouchers due to unavoidable reasons can not be the sole reason as the books of account of the assessee were audited and at the time of audit, the auditor had verified the vouchers for the said expenses. The Ld. AR further submitted as relates to sundry creditors, the assessee provided the PAN of the creditor to the Assessing Officer and Assessee made .....

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business office. Therefore, the CIT (A) has rightly deleted the addition made by the Assessing Officer. 8. As relates to Ground No. 2, the assessee has properly established that tanker expenditure, the assessee has given the relevant documents and established that the expenditure was incurred during the said Assessment Year. As relates to salary expenditure it is not a fixed nature because in the relevant assessment year the assessee opened another office and deputed new staff and for this reaso .....

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