Book adjustment can’t be deemed as contravention 269SS/269T
Mere book adjustment can’t be deemed as contravention of Sec. 269SS/269T
Section 271D, read with sections 271E, 269SS and 269T, of the Income-tax Act, 1961 – Penalty – For failure to comply with section 269SS (Book adjustment)
Making book adjustment of funds by assessee firm with sister concern without making payment of cash, could not be said to be violation or contravention of section 269SS and section 269T [2015] -HIGH COURT OF ANDHRA PRADESH AND TELANGANA -Gururaj Mini Roller Flour Mills -v. ACIT
A notice was issued to assessee-firm proposing to levy penalty on ground that certain receipts/payments exceeding ceiling limit were made in cash to/from sister concern and to one ‘S’
Assessee submitted that there were only book adjustments of funds with sister concern and no cash was paid
As regard payment to ‘S’, it was stated that same was paid to ‘S’ on death of her husband who was legal advisor of company.
No revision by CIT alleging discrepancy in stock if AO had verified actual quantity of stock during assessment Section 145, read with section 263, of the Income-tax Act, 1961 – Method of accounting – Valuation of stock.
Where Assessing Officer found that assessee maintained correct and proper books of account and assessment order was passed after considering actual quantity of stock from books as well as that physically available, revision was not justified[2015] – ITAT PANAJI -K.N. Ramchandra Naidu -v. CIT
Commissioner passed order for revision on ground that there was a difference in declaration of stock by assessee and stock available in books
However, it was found that assessee maintained correct and complete books of account, which was accepted by Assessing Officer and assessment order was passed after considering actual quantity of stock from books as well as physically available
It was held that no fault could be found with said assessment and same could not be termed as erroneous
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