Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
ITAT held that the addition of 5% of total sales consideration as estimated profit on alleged unexplained cash credits u/s 68 was unsustainable. It found that the CIT(A) had directed the AO to make this addition purely on presumptions and surmises, without any cogent basis or supporting material, despite confirmation of the transactions by the buyer in response to summons u/s 131 and production of evidences. Relying on the HC decision in a similar fact situation, ITAT set aside the part of the CIT(A)'s order sustaining the 5% addition, dismissed the revenue's appeal, and allowed the assessee's cross-objection.
ITAT held that the addition of 5% of total sales consideration as estimated profit on alleged unexplained cash credits u/s 68 was unsustainable. It found that the CIT(A) had directed the AO to make this addition purely on presumptions and surmises, without any cogent basis or supporting material, despite confirmation of the transactions by the buyer in response to summons u/s 131 and production of evidences. Relying on the HC decision in a similar fact situation, ITAT set aside the part of the CIT(A)'s order sustaining the 5% addition, dismissed the revenue's appeal, and allowed the assessee's cross-objection.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4826 
Join Channel 
