TaxTMI 
TaxTMI 
2004 (5) TMI 255
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....l Chemicals (P) Ltd. The learned Authorised Representative of the assessee has contended that in first round, the learned CIT(A) had set aside the matter of this addition which the AO has made as the assessee had not furnished the confirmation at the time of original assessment; and that this appeal is in second round and the assessee has furnished the confirmation of Rs. 25,000 before the AO with GIR number in second round and also furnished copy of accounts (pp. 1 and 3 of the paper book) duly confirmed by the creditor, M/s Cresswell. He has confirmed that the AO's finding regarding alleged contradiction is factually incorrect. He has contended that the director of the company appeared before the AO and confirmed the credit. He has conten....
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....xplained and in turn rightly made the addition as the assessee's income from undisclosed source. 4. I have considered the rival contentions, the relevant material on record, as also the cited decisions. The crucial point relying on which the AO made the addition was contradiction between confirmation letter filed by the assessee showing outstanding balance of Rs. 25,000 and the books of account of the assessee, showing the balance amount of Rs. 25,000 having been adjusted on 30th March, 1990, against the purchase of a pulvariser by the creditor-company of assessee. However, from the perusal of record it is revealed that the creditor is an IT assessee and its GIR number was also furnished by the assessee to the AO, along with the confirma....
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....ind no justification for this addition which I delete accordingly. 5. Ground No. 2 disputes the following disallowances/additions on account of expenses : Rs. (a) Postage 2,000 (b) Petrol expenses 2,500 (c) Depreciation 10,955 6. The learned Authorised Representative of the assessee has contended that the AO has made excessive disallowance and addition @ 25 per cent and so the Tribunal may grant appropriate relief to the assessee. 7. The learned Departmental Representative has contended that the disallowance/addition made by the AO is not excessive. He has contended that the assessee even did not maintain log book in respect of use of car. He has contended that no further relief should be given to ass....
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....d any bank account at Osian and the same is giving discount on cash payment so the payment was made in cash. He has contended that the seller's confirmation is placed at p. 13 of the paper book wherein also the factum of discount (Muddat) of Rs. 110 is specifically mentioned as having been given to the assessee. 12. As regards Prem Chand Paras Mal Jain, he has contended that the transaction took place on 25th Dec., 1989, the day on which it was a bank holiday; so the assessee made the payment in cash due to urgency of seller. He has contended that the seller's confirmation is placed at p. 15 of the paper book. He has also contended that this seller was new to the assessee and so he was pressing for payment in cash. 13. As regards Asha....
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....ered with Sales-tax Department and are IT assessees. He has contended that even discount is available on cash payment. 17. I have considered the rival submissions as also the relevant material on record. Considering the fact-situation of each of the above 5 parties, to whom the assessee made the payment in cash, as detailed above in the ground as discussed above, I am of the view that the assessee made the aforesaid payment in cash due to exceptional circumstances being of insistence for payment in cash by the seller party, the discount being available on cash payment and the day of payment being holiday as also the fact that neither of these two parties, i.e., purchaser and seller having bank account at Osian; supporting seller's confir....