TaxTMI 
TaxTMI 
2012 (6) TMI 598
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....wance of Rs.23,65,688/- u/s.37(1) of the Act in respect of purchase of materials made from under stated parties :- a) M/s. Vikrant Enterprises Rs.3,33,287/- b) M/s. Prakash Trading Co. Rs.8,55,456/- c) M/s. Bhanji Hirji Patel Rs.2,95,113/- d) M/s. Artex Enterprises Rs.8,81,832/- Total Rs.23,65,688/- 2.0 The Ld. CIT(A) erred in confirming the disallowance u/s. 37(1) of Rs.23,65,688/- on grossly ignoring the fact that appellant had not claimed such cost of construction as revenue expense, rather had capitalized it to the closing work in progress. 3.0 The Ld. CIT(A), before confirming the additions of Rs.23,65,688/- ought to have appreciated the fact that: a) The entire payments were made through banki....
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..../-. The ld. AO sought the following details from the said parties : i) Ledger account of Smt. Manjula S. Goradia in books of accounts for F.Y. 2004-05 & 2003-04. ii) Nature of transaction i.e. material sold or services rendered. iii)Copy of return of income from F.Y. 2004-05 & 2005-06." When none of the parties except M/s. Otis Elevators Co. (I) Ltd. responded to the notices sent by the AO, the ld. AO vide letter dated 3-12-2008, asked the assessee to produce the parties by 11-12-2008. The assessee received this letter on 4-12-2008. In pursuance of the said letter, the assessee could not produce any of the abovesaid parties to prove that she had paid the amount ....
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....e instant grounds before us. We also find it relevant to mention here that along with the instant appeal, the ld. AR has also filed paper book comprising documents at serial nos.1 to 5 with necessary certification. Opening the arguments, the ld. AR appearing for the assessee contended that in the instant case the notice in question dated 3-12-2008 (copy produced before us today) provided too short a time to the assessee to prove the genuineness of the transactions in question. The said notice was received on 4-12-2008. Since the time provided to show cause was too short, therefore, the assessee, who is an old lady, could only produce the entire records of the transaction in question before the ld. AO. Within the short span of time, she co....
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....he entire record, we are of the opinion that in the instant case, since the ld. AO had provided only a week's time to prove the genuineness of the transactions, so whatever materials could the assessee gather, were placed before the ld. AO. So far as the findings of the ld. lower authorities below that PAN numbers of the payees in question were not provided is against the record as the same are duly mentioned in pages stated above . Reference in this regard is made to page-11 containing PAN number of Bhanji Hiraji Patel (supra). Regarding M/s. Prakash Trading Co., PAN number is at page 43 of the paper book. So far as the other party i.e. M/s. Artex Enterprises is concerned, its PAN number duly finds mentioned at page 62 and so on. Therefor....
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....leave to amend or alter any ground or add a new ground which may be necessary. Since ground no. 4 is general in nature, we are only deciding ground nos. 1 to 3 together. Facts giving rise to filing of the instant appellant by the Revenue are that the ld. AO had made an addition to the income of the assessee to the tune of Rs.70,86,956/- on the ground that regarding the abovesaid alleged payment made by her to her alleged tenant Shri Virendra Kumar Mehta in lieu of getting vacant possession of the premises in question leading to surrender of tenancy was bogus. The ld. AO also came to the conclusion by taking recourse to the provisions contained in sec. 68 of the Act that the said Shri Virendra Kumar Mehta was not in fact tenant of the asse....
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..... Findings of the ld. CIT(A) to this effect may be set aside thereby the addition made by the ld. AO be upheld. On the other hand, the ld. AR appearing for the assessee has referred to the paper book comprising of the entire record of the case which has been filed separately in the instant appeal. He drew our attention towards the rent receipts of Shri Sachdeo upto the year 2000. Stated that undisputedly Shri Sachdeo was the assessee's tenant from the year 1950 to 2000. It was in the year 2000 that Shri Sachdeo inducted Shri Mehta as sub-tenant. As a result, since 2000 till the Agreement of surrender of tenancy dated 22-10-2003, Shri Mehta was the assessee's tenant. The agreement of surrender of tenancy in this regard is a duly registered ....