Case Law Details
ITO Vs Bajaj Roadways (ITAT Kolkata)
Revenue’s substantive ground seeking to revive unexplained cash credit addition of Rs.64, 10,000/- in assessee’ s partners’ capital Suffice to say, various judicial precedents have settled the law that such addition has to be made in the concerned partners’ hands than in case of a firm assessee. We quote one of them CIT vs Metachem Industries (2000) 245 ITR 160 (MP) (supra) in support. The CIT(A) has already granted liberty to the Assessing Officer to assess the very sum in case of assessee’s individual partners’ concerned. We make it clear that there is not an argument raised before us doubting assessee explaining all the impugned money coming from its partners’ capital account only. We thus find no merit in Revenue’s instant latter substantive ground as well.
FULL TEXT OF THE ITAT JUDGMENT
This Revenue’s appeal for A.Y.2005-06 calls into question the CIT(A)-12, Kolkata’s order dated 19.07.20 16 passed in Appeal No.90/CIT(A)-12/Kol/Ward-40(3)/2015-16 reversing the Assessing Officer’s action invoking section 40(a)(ia) disallowance in case of lorry payments and adding unexplained cash credits u/s 68 in assessee’s partners’ capital account involving sums of Rs.1,43,01,395/- and Rs.64, 10,000/-; respectively involving proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (Act).
2. The Revenue invites our attention towards assessment order dated 22.03.2013 indicating the tax payer not to have deducted any TDS on the impugned lorry payments totalling to Rs. 1,43,01,395/-. He states that there is no dispute that the said payments had been made without deducting any TDS thereupon attracting section 194C r.w.s. 40(a)(ia) of the Act for the purpose of making disallowance in question.
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