2005 (4) TMI 277

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.... assessee derived income from business in cotton bales, income from interest and house property and dividends, etc. The learned AO made additions after making various disallowances and thus, computed the total income at positive figure of Rs. 1,85,170, against which the assessee filed appeal and the learned CIT(A) gave part relief. So, both the parties are aggrieved. 3. The Department has challenged vide first ground the reduction of disallowance of loss from Rs. 2,75,946 to Rs. 1,00,088. The brief facts for this issue are that the assessee entered into twelve transactions of purchases and sales of fully pressed cotton bales. The AO doubted the sales and purchase of eight transactions as it was noticed by him that in most of the cases th....

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....addition can be made by disallowing a claim on the basis of presumptions and assumptions only. When the assessee did produce the requisite evidence demanded by the learned AO, it was his duty, thereafter, to disprove the same by way of concrete evidence. Any rejection on the basis of surmises and conjectures that the dealing was with the sister-concern, the offices were located in the same premises, etc. cannot lead to any logical conclusion. When all the purchases and, sales are admittedly vouched and verifiable and both the seller and buyer are income-tax assessees and nothing has been hidden by anyone of them, then the transactions cannot be stated to be bogus. When you are accepting the similar transaction with the same sister-concern w....

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....s issue was set aside by the learned CIT(A) in the first round when the assessee filed a copy of agreement between assessee and the Sunrise Industries to whom the car in question was rented out. The learned AO again made the addition which was also confirmed by the CIT(A). 9. I have heard the rival submissions and perused the evidence on record. 10. Both the learned Authorised Representative and Departmental Representative have taken the same lines of arguments which were taken earlier. However, the expenses relating to car repair, diesel expenses, insurance, interest on car loan, salary to driver and depreciation have to be allowed even if the car was not given on hire. But in this case, the assessee had shown profit of Rs. 34,986 in....