2014 (5) TMI 657

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pondent : Shri Jahangir Mistry and Madhur Aggarwal ORDER   Per P. M. Jagtap, AM: This appeal is preferred by the revenue against the order of ld. CIT(A)-38, dated 24.3.2011 whereby he deleted the addition of Rs.15,18,000/- made by the Assessing Officer on account of painting purchased by the assessee treating the same as unexplained/unproved purchases. 2. Assessee in the presen....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the assessee in this regard was that the payment against the said purchases of paintings was made by cheque which included VAT amount also. The documentary evidence was also produced by assessee to establish that the cheques so issued were duly encased. This explanation of the assessee, however, was not accepted by AO on the basis of appraisal report of the Investigation Wing and the amount of Rs.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the appellant during the appeal proceedings. The appellant has submitted that it is a pharmaceutical equipments manufacturing company. It appears that the appellant company, though belongs to ACG Arts Group is not a trade in paintings. The appellant company has not debited the cost of purchase of the said painting, for a price of Rs.15,18,000/-, in its profit and loss account. It is reiterated tha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....15,18,000/- is found to be unwarranted and the same is hereby directed to be deleted." 4. Aggrieved by the order of ld. CIT(A), the revenue has preferred this appeal before the Tribunal. 5. We have heard both the parties and perused the material available on record. As noted by the ld. CIT(A) in his impugned order, the assessee company during the year under consideration was not engaged in ....