IT : Where Assessing Officer treated a part of sundry creditors as non-genuine taking a view that assessee could not file any details or no explanation was offered in respect to them, in view of fact that liability in question still existed in assessee's books of account, impugned addition was to be deleted
IT : Once books of account are rejected and profit is estimated on disputed turnover/purchases, no further disallowance can be made by invoking provisions of section 40A(3)
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[2014] 49 taxmann.com 323 (Kolkata - Trib.)
IN THE ITAT KOLKATA BENCH 'B'
Income-tax Officer, Wd-1, Haldia
v.
Sadananda Singha*
MAHAVIR SINGH, JUDICIAL MEMBER
AND SHAMIM YAHYA, ACCOUNTANT MEMBER
IT APPEAL NOS. 1881 (KOL.) OF 2009 & 133 (KOL.) OF 2010
C.O. NO. 20 (KOL.) OF 2010
AUGUST 13, 2014
I. Section 68 of the Income-tax Act, 1961 - Cash credits (Trade creditors) - Assessment year 2006-07 - During relevant year, Assessing Officer treated a part of sundry creditors as non-genuine taking a view that assessee could not file any details or no explanation was offered in respect to them - Accordingly, addition was made to assessee's income - It was noted that trade creditors /sundry creditors existed in balance sheet of assessee and there was no write off made by assessee - Whether in view of fact that liability still existed books of account, same could not be added to assessee's income - Held, yes - Whether, therefore, impugned addition was to be deleted - Held, yes [Para 11] [In favour of assessee]
II. Section 40A(3) of the Income-tax Act, 1961 - Business disallowance - Cash payment exceeding prescribed limits (Applicability of) - Assessment year 2006-07 - Whether once books of account are rejected and profit is estimated on disputed turnover/purchases, no further disallowance can be made by invoking provisions of section 40A(3) - Held, yes [Para 14] [In favour of assessee]
K.L. Bhowmick, Advocate for the Appellant.David Z. Chawngthu, CIT, DR for the Respondent.
IT : Once books of account are rejected and profit is estimated on disputed turnover/purchases, no further disallowance can be made by invoking provisions of section 40A(3)
■■■
[2014] 49 taxmann.com 323 (Kolkata - Trib.)
IN THE ITAT KOLKATA BENCH 'B'
Income-tax Officer, Wd-1, Haldia
v.
Sadananda Singha*
MAHAVIR SINGH, JUDICIAL MEMBER
AND SHAMIM YAHYA, ACCOUNTANT MEMBER
IT APPEAL NOS. 1881 (KOL.) OF 2009 & 133 (KOL.) OF 2010
C.O. NO. 20 (KOL.) OF 2010
AUGUST 13, 2014
I. Section 68 of the Income-tax Act, 1961 - Cash credits (Trade creditors) - Assessment year 2006-07 - During relevant year, Assessing Officer treated a part of sundry creditors as non-genuine taking a view that assessee could not file any details or no explanation was offered in respect to them - Accordingly, addition was made to assessee's income - It was noted that trade creditors /sundry creditors existed in balance sheet of assessee and there was no write off made by assessee - Whether in view of fact that liability still existed books of account, same could not be added to assessee's income - Held, yes - Whether, therefore, impugned addition was to be deleted - Held, yes [Para 11] [In favour of assessee]
II. Section 40A(3) of the Income-tax Act, 1961 - Business disallowance - Cash payment exceeding prescribed limits (Applicability of) - Assessment year 2006-07 - Whether once books of account are rejected and profit is estimated on disputed turnover/purchases, no further disallowance can be made by invoking provisions of section 40A(3) - Held, yes [Para 14] [In favour of assessee]
K.L. Bhowmick, Advocate for the Appellant.David Z. Chawngthu, CIT, DR for the Respondent.
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