TaxTMI 
TaxTMI 
2012 (7) TMI 681
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....s appeal was called out for hearing; it having placed written submissions on record, with a request, vide letter dated 02-04-2012, that the appeal under reference be heard on that basis. The appeal raises three grounds, each of which we shall take up in seriatim. 3. Before us, the ld. DR would rely on the impugned appellate order. 4. We have heard the party before us, and perused the material on record, including the written submissions submitted by the assessee. 5. The first ground is in respect of confirmation of an addition for Rs. 30,000/- by the Assessing Officer (AO) upon rejection of the assessee's books of accounts u/s. 145 of the Act, at Rs. 15,000/-. The brief facts of the case are that the assessee, a trader dealing in ....
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....as the assessee supported its disclosed gross profit rate with any other material. How could the trading results be determined, which require computation of the cost of sales, in the absence of the stock records leading to the ascertainment of the goods consumed or sold? The assessee has also not been able to explain the anomalies in its accounts with reference to the trading of items purchased from U.P. As such, the Revenue is justified in applying the provision of section 145(3) of the Act, which empowers the AO to frame the assessment in a manner provided u/s. 144, i.e., to the best of his judgment, taking all the relevant material into account. However, even as clarified by the hon'ble jurisdictional high court, as well as by other high....
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....he Act. The same found confirmation with the ld. CIT(A) on the same basis; the assessee having been unable to discharge the burden of proof on it in respect of the said impugned credits. Aggrieved, the assessee is in appeal. 8. As apparent, the assessee's case is based on only the affidavits from the creditors filed by it. The satisfaction or otherwise with regard to the nature and source of a credit and, consequently, its acceptance or otherwise u/s. 68 of the Act by the AO is to be on the basis of the materials on record as well as the explanation/s furnished in support; the said materials rather only forming part of the assessee's explanation, and cannot on the basis of the affidavits. This is as questions of fact, the invocation of s. ....
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....s The creditors known to the assessee, as nobody could be expected to lend his money otherwise, and on what terms and conditions was the amount given? The assessee, however, has stated per his written submissions of having rendered the affidavits complete before the ld. CIT(A), who, though, has ignored the same. In our view, the same constituting an error of fact, ought to have been urged by way of a ground of appeal by the assessee. Nevertheless, the fact remains that the incompleteness of the affidavits are stated by the assessee to have been removed. As such, the same constitutes a valid material on record, i.e., something more than a bald assertion. Considering the nominality of the amount involved, and without prejudice to our foregoi....
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....eduction to the extent of 20% thereof. The urgency of payment, which is the business exigency being pleaded, nowhere falls within the excepted categories, which preclude consideration of factual or genuine hardship attending the payment, i.e., other than those specified. Again, it is not a question of genuineness of the expenditure; the provision of section 40A(3) being applicable only in respect of an expense which is otherwise allowable in the computation of business income. The same, it is to be appreciated, is only toward contravention of the prescribed mode of payment, which stands admittedly breached. The supplier's bank, it is to be appreciated, is only acting as its agent in accepting the cash for and on behalf of its constituent. T....