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| The Tax Publishers2020 TaxPub(DT) 4057 (Chen-Trib) INCOME TAX ACT, 1961
Section
Where AO alleged that assessee claimed higher deduction towards 'Profit on sale of Assets' while deducting the same in computation of its income chargeable to tax; however, the assessee claimed that there was no difference in amount of deduction claimed towards 'Profit on sale of Assets'; therefore, the issue with regard to addition on account of 'Profit on sale of Assets' was remanded to AO for verification of such claim of the assessee.
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Assessee-company credited some amount to its Profit & Loss A/c on account of 'Profit on sale of Assets'. However, while deducting the said amount in computation of its income chargeable to tax filed along with return of income, the assessee claimed higher deduction towards 'Profit on sale of Assets'. Therefore, the differential amount was brought to tax by AO. Assessee submitted that in its P&L A/c under the head 'Other Income', it reflected 'Miscellaneous Receipts', which included 'profit on sale of old vehicle' and hence there was no difference in amount of deduction claimed towards 'Profit on sale of Assets'. Held: In view of assessee's submission that in its P&L A/c under the head 'Other Income', it reflected 'Miscellaneous Receipts', which included 'profit on sale of old vehicle' and hence there was no difference in amount of deduction claimed towards 'Profit on sale of Assets'; the issue with regard to addition on account of 'Profit on sale of Assets' was remanded to AO for verification of the submission of the assessee. Further, the assessee was directed to produce all the necessary evidences before the AO to substantiate its claim for de novo determination of the issue by the AO.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 37(1)
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