As no explantion given regarding sources NSCs & FDRs, additions by AO upheld.
As no explantion given regarding sources NSCs & FDRs, additions by AO upheld.
"Assessee filed its income return. AO made addit'n of 7% net profit on disclosed receipts as against 8%. On appeal CIT(A) justified it. On appeal ITAT held, CIT(A) decided issue on basis AO has made addition without bringing any material on record. Furtner, In written submissions of assessee, there is no explanation regarding source of these NSCs & FDRs of Rs.7.50 lac. Thus, no interfearence required in the order of the CIT(A)."-500980
Facts in Brief:
1. Assessee filed its income return.
2. AO made addition of 7% net profit on the disclosed receipts as against 8%.
3. On appeal CIT(A) justified it.
On appeal ITAT held,
4. Court find that this issue was decided by CIT(A) on the basis that the Assessing Officer has made the addition without bringing any material on record.
5. He has also observed that the Assessing Officer has not made any enquiry from Urban Co-operative Bank Limited who have acted as guarantor of the assessee. Thereafter he has observed in Para 5.3 of his order that NSCs and FDRs of Rs.7.50 lac which were given as guarantee are not reflected in the balance sheet of the assessee as on 31/03/2010. He upheld the addition of Rs.7.50 lac being NSCs and FDRs given by the assessee as security and have not been recorded in the balance sheet.
6. In the written submissions of the assessee, there is no explanation regarding the source of these NSCs & FDRs of Rs.7.50 lac. Under these facts, we are of the considered opinion that no interference is called for in the order of learned CIT(A) on this issue also.
7. Accordingly, ground No. 2 & 3 of the Revenue as well as Ground No. 2 of the Cross Objection of the assessee are rejected.
8. In the result, the appeal of the Revenue and the Cross Objection of the assessee are dismissed.
Case Reference - Income Tax Appellate Tribunal - Lucknow Smt. Manju Lata Singh, Gonda vs Department Of Income Tax.
×
