TaxTMI 
TaxTMI 
TaxTMI 
2012 (12) TMI 723
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....e total expenditure between the two businesses on the basis of the Turnover of each line of business (21% towards brokerage business and 79% towards the business of trading in shares). From the order of the Assessment total income from the two businesses (before allocation of expenditure) is Rs.3,05,84,558 (Rs. 94,09,073/- + Rs. 2,11,75,485/-) and the total expenditure for allocation is Rs. 2,35,44,668/-. After the allocation made by the expenditure the net profit in both lines of business are Rs. 10,03,545/- from the brokerage business and Rs. 27,00,234/- in the business trading in securities on its own account. Thus the total income after allocation of expenditure is Rs. 37,03,779/- which also appears to be the income returned by the Asse....
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....en the two lines of business and the Assessee has come up on appeal on the issue, we follow the directions of the ITAT for the earlier years referred to supra, and while upholding the allocation of expenditure between the two lines of business, we direct the AO to attribute 5% of the total expenditure to income from trading in shares in Assessee's own name. In this expenses of Kakinada Branch should be excluded. The same ratio will be applicable to depreciation as well. The balance expenditure should be set off against the brokerage income. In the result the ground of appeal of the Assessee is treated as partly allowed. 5. The next issue on appeal is the addition of Rs. 40,76,167/- for the balance in trade credit accounts under sec 68. The....
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....d to transact with the company in his and his wife's name. It was further submitted that due to huge loss incurred by him in the stock market, Sri Surya Reddy committed suicide. He owed the company for the transactions carried out by him. It was stated that in view of the amount owed by him the company has withheld the credit balance due to his spouse, Smt. K. Rukmini. It was further submitted that as the company has held back her funds, Smt. Rukmini was unwilling to give confirmation letters for her outstanding balance and hence the company was not able to obtain the confirmation letter. As regards Vijaya Katyayani, it was submitted that during the company's efforts to obtain the confirmation letter, it had come to light that the creditor ....
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....e appellant for accepting the alleged two confirmation letters now sought to be filed before me, which constitutes additional evidence, in my view, cannot be entertained and hence the same are not admitted. 11.2 Without prejudice to the above, it may be further mentioned here that the said two confirmation letters, claimed to have been obtained from the said two creditors, have no evidentiary value since the same do not contain full identity of the creditors, their complete address, their Income Tax PAN Number, and the dates when the same were signed y the concerned persons. 11.3 It has been further submitted that Sri Mahfooz Ali Khan died in 2005. In that case, the appellant could have obtained a confirmation from his legal heir for esta....
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....e Mr. Mahfooz Ali Khan and Smt. K.Rukmini Devi and Smt. Vijaya Katyayani the credits are coming from earlier years. Carried forward amount from the earlier years cannot become unexplained cash credit of the current year. (CIT v Usha Studio Agricultural farms Ltd 301 ITR 384 (Del) and other decisions). This fact that the credits come from the earlier years can be verified and to be decided in the light of the said judgment cited supra. In the case of Smt Anju K and Smt Raeesa Kaleemuddin, the assessee has pleaded before us that it has produced the confirmation letters from the parties. In our opinion, the assessee has to prove the identity of the creditors, genuineness of the transaction and capacity of the creditors. The onus is on the asse....