TaxTMI 
TaxTMI 
2015 (7) TMI 395
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....uring of telecom equipments. It had filed its return of income declaring loss of Rs. 5,63,460/-. During the year under consideration the assessee company did not show any receipt from its manufacturing activities. The assessment was completed at a net loss of Rs. 1,16,08,586/-, inter alia, after making following additions/ disallowances: (i) Rental income of Rs. 16,33,125/- returned as business income by assessee, was treated as income from house property. (ii) Addition of Rs. 20,61,090/- u/s 68 rejecting the assessee's claim of impugned amount being advance from customers. 3. Ld. CIT(A) had partly allowed the assessee's appeal. Being aggrieved, the assessee is in appeal before us and has taken following grounds of appeal: "1. T....
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....ead even though such income may also fall under the other head. 6. He pointed out that the assessee is the absolute owner of the premises 286, Udyog Vihar, Phase-II and other fitments and fixtures therein. The company was incorporated on 6-2-1995 and has put the property on rent since 1-10-1997. He, therefore, concluded that the rent was received in exercise of the property rights of assessee. Ld. CIT(A) confirmed the AO's action, inter alia, observing that t he issue is no more res integra in view of following decisions: - United Commercial Bank v. CIT (1957) 32 ITR 688 (SC); - Scindia Potteries Vs. CIT (2002) 253 ITR 168 (Del.); - Shambhu Investments Pvt. Ltd. Vs. CIT (2003) 263 ITR 143 (SC); 7. Ld. counsel for the assessee refer....
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....r informed, after local inquiry, that the company was never in existence at the given address. The AO further observed that the company was not filing any income tax return. The AO brought this fact to the knowledge of assessee and asked to produce M/s Aegis India CATV Systems Pvt. Ltd. along with confirmed copy of account. Since assessee did not produce any person on behalf of the said company nor filed any confirmation, he made addition of Rs. 20,61,090/-. 10. Ld. CIT(A) confirmed the action of AO, inter alia, observing that assessee had not made efforts to produce the party and had not even filed any confirmation letter from the party or its bank statement or income-tax assessment, detail of PAN etc. 11. Ld. counsel for the assessee su....
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....herein the purchase order is contained and the same is dated 7-7-1999 for Rs. 1,30,00,000/-. In the assessment order the AO observed that during the year under consideration the company did not show any receipt from its manufacturing activity. Therefore, it is not clear as to how the assessee could ask for advance. The assessee did not file any confirmation letter from the party or its bank statement or income-tax return details, PAN etc. Ld. CIT(A) has observed that on perusal of the relevant alleged account of the said party, it was seen that the amounts had been received by the assessee throughout the year beginning from April 2000 up to February 2001. He has observed that if it was advance against sales then one fails to understand as t....