I.T.O. vs. M/S KUMAR CONSTRUCLTION,

ITA 10/PAT/2015Status: DisposedITAT Patna17 October 2023AY 2009-1019 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(Appeals) erred in deleting the additions made under Section 40A(3) and 40(a)(ia) solely on the basis of unreliable books, and that specific disallowances were warranted. However, the Tribunal upheld the deletion of an addition of Rs. 66,99,500/- made under Section 68, finding it to be an accounting error rather than an unexplained cash credit.

What were the facts?

The Assessing Officer made additions under Section 40A(3) for payments exceeding Rs. 20,000/- made through bearer cheques and under Section 40(a)(ia) for non-deduction of TDS. The CIT(Appeals) deleted these additions, holding that the books of account were unreliable and profits should be estimated. The Revenue appealed this decision.

What were the issues?

Whether the CIT(Appeals) was justified in deleting additions made under Section 40A(3) and 40(a)(ia) by estimating profits instead of making specific disallowances. Whether an amount treated as unexplained cash credit under Section 68 was indeed an accounting error.

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 40(a)(ia),Section 68

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, KOLKATA-PATNA ‘e-COURT’, KOLKATA

Before: Shri Rajpal Yadav, Vice-(KZ) & Shri Rajesh Kumar

Per Rajpal Yadav, Vice-President (KZ):- The Revenue is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals)-3, Patna dated 28.01.2015 passed for A.Y. 2009-10. 1 Assessment Year: 2009-2010 M/s. Kumar Construction

2.

Grounds No. 1, 2 & 3 are inter-connected grounds therefore we first take these grounds of appeal.

3.

In these grounds, the Revenue has pleaded that

The order continues below.

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