https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=219623 https://www.taxtmi.com/caselaws?id=219623 Inadequate Drawings - Held that:- In the absence of any finding of fact that the appellant had infact “incurred” the estimated expenditure on drawings, during the relevant financial years, the addition made towards drawings u/s 69C is bad in law - thus pursuing the materials available on record there is no evidence on record for making these additions. No material was found during the course of search to indicate any suppression of drawings and the drawings admitted by the assessee are unreasonable - no evidence brought on record by the Revenue in support of the addition made in the assessment order towards inadequate drawings - against revenue. Unexplained Income - CIT(A) directing the AO to assess income under the head ‘other sources’ as against u/s 69B - Held that:- The order of the CIT (A) needs no interfere as he has recorded the finding of fact that the AO had only assessed whatever was offered by the assessee and such sum was not detected by the AO. As no material was placed on record suggesting that the assessee has made payment over and above the documentary value for purchase of the property as alleged in the assessment order the order of the CIT (A) in holding that the amounts offered by the assessee voluntarily in his return of income should be assessed as income from other sources and not be assessed as unexplained investment under section 69B is confirmed - against revenue. Unexplained Cash - Held that:- The cash seized in the course of search at the residence of the assessee is out of cash balance available in the books of account of M/s. Everbright Exports, which is the proprietory concern of the assessee. The Everbright Export had been regularly assessed before the Assessing Officer at Vellore. It is located at Satyamangalam on the Chennai-Bangalore Highway and in the premises of this concern, books were maintained and were also subjected to audit under section 44AB. This concern exists right from 2004 and it is not an afterthought of the assessee later to the date of search. Therefore, CIT (A) deleted the addition made u/s 69 - against revenue. De novo assessment made under section 153(A) - Held that:- As per provisions of section 153A to 153C it provides for fresh assessments for six years preceding the year of search and assessments need not be confined to issues based on the materials found during the course of search Levy of Interest - Since levy of interest under section 234B is only consequential, no force in the ground taken by the assessee. Deduction under section 10B - Delay in filing returns - Held that:- When the assessee is making a claim for the first time before the CIT(A) it is not proper and correct in rejecting the assessee’s claim on the ground that there is no claim made in the return of income when such claim is otherwise allowable - CIT(A) should have entertained the claim of the assessee on merits without rejecting the additional ground stating that no claim is made in the returns. Case-Laws Income Tax Mon, 23 Jul 2012 00:00:00 +0530