ITAT deleted additions as they were explained by assessee
ITAT deleted additions as they were explained by assessee
A survey u/s 133A was conducted in Mukut Mahal Banquet Pvt Ltd’s premises. It filed its return of income. AO recorded statement of 6 parties behind assessee’s back. AO completed assessment after making various additions. CIT(A) partly allowed assessee’s appeal. ITAT deleted additions as they were explained by assessee, and payments made by 5 parties were made to service providers and not to assessee.-500622
1. Mukut Mahal Banquet Pvt Ltd was running a Hotel and Bar/Banquet Hall etc.
2. A survey u/s. 133A was conducted upon the premises of the assessee.
3. Assessee filed its return of income declaring an income of Rs. 4,75,770.
4. AO during post survey proceedings recorded statement on oath of six parties behind assessee’s back.
5. One party confirmed to have been paid the amount of Rs.20,OOO, and five parties stated that the amount paid by them was towards hire charges of banquet etc.
6. AO completed assessment u/s 143(3), assessing total income at Rs 12,88,157, after making various additions.
7. CIT(A) partly allowed the appeal of the assessee.
On appeal, the ITAT held as under:
8. To be a relative of any director is aIso not necessary for keeping the money in trust for a day or two for safe custody.
9. The statement of the director of the assessee at the time of survey operation specifying the exact money to the extent of Rs.63, 120 also supports assessee's case.
10. In view of the above, I hereby delete the additions in dispute
11. I am of the considered view that that the excess amount declared to have been paid by the said five (5) parties during their earlier statements, were in fact paid by them to the different service providers and not to the assessee .
12. It is not possible for the parties solemnizing their function to remember the names of the different service providers, being one time dealing only. In view of the above, I hereby delete the addition in dispute raised.
Case Reference - M/S MUKUT MAHAL BANQUET (P) LTD. vs. Income Tax Officer.
IN THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH "SMC-2": NEW DELHI
BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER
ITA No. 437/Del/2015
(A.Y. : 2009-10)
