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=233668 https://www.taxtmi.com/caselaws?id=233668 Unexplained cash credit - Lack of creditworthiness of Sundry Creditor - CIT(A) deleted addition - Held that:- CIT(A) rightly considered that non response of summons u/s 133(6) were not to be considered in the case of assessee, in so far as, the creditors had sold the goods to the assessee which bills were produced before the AO were documented to the extent that identity, genuineness and creditworthiness were established. AO could not have considered the application of case laws without accepting the facts that there was no cause for him to invoke the provision of section 68 merely on non response from the trade creditors. Against revenue. Unexplained cash credit - advance received from sundry debtors unexplained - CIT(A) deleted addition - Held that:- CIT(A) held that the AO ought not to have taken shelter of the cited case laws that misinterpretation of the statements cannot be a ground for invoking the provision of section 145(3). It was the case of postponing the sales against such advance in the impugned assessment year, in so far as, the AO has not pointed out any specific defect in receiving the advance from sundry debtors to be applied as future as sales. CIT(A) thereafter held the same as onus being discharged by the assessee as, creditworthiness of the sundry creditors or advance received from sundry debtors cannot be questioned under the provision of section 68 as the onus rests on the AO to disprove the facts that the purchases were bogus & challenging merely on non response from the trade creditors - Against revenue. Commission on sale being extra-commercial in nature - CIT(A) deleted addition - Held that:- AO has resorted to compare the payments of commission on the turn over in the immediately assessment year. Both the turn over and the commission are variable items for computing the income. Therefore, cannot be compared, in so far as, there is no fixed percentage to be derived on earning income after parting with commission. This ground of the Revenue stands dismissed. Disallowance of installation expenses - CIT(A) deleted addition - Held that:- AO tried to import his own version of incurring expenditure to be supported by evidences when the assessee produced the ledger copy of the party from whom the assessee had purchased the goods as the sales had been incorporated and the purchases included the installation expenses, in so far as, the assessee's not rendering the job work was got done from the seller of the goods only. The amounts have been incurred by the assessee on the basis of the bills raised by the party when the total purchases were sold already been subjected to tax in the hands of the other party. CIT(A) has rightly considered that the AO had not been able to establish separation of income, and it was only a hint that the AO out of surmises and doubts had not been clarified by the revenue even as of now - appeal of the Revenue dismissed. Case-Laws Income Tax Mon, 08 Apr 2013 00:00:00 +0530