2015 (7) TMI 735

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....allenged the order of the Ld. CIT(A) on two counts. First ground is in relation to the deletion of the addition made by the AO u/s. 69C of the Act and the second grievances relates to the deletion of the addition made by the AO on account of disallowance of freight expenses. 2.1. First we take up the appeal for A.Y. 2007-08 in ITA No. 4391/M/2013. The facts of the case are that A Search & seizure action u/s 132 of the Income Tax Act, 1961 was carried out on 05.10.2007 in the case of M/s. Mehta Transport Services(I) Ltd. and assessment proceedings u/s.153C were completed by Dy.C.I.T., Central Cirde-31, Mumbai in the case of Shri Vijay J Mehta. During the course of this proceedings, an intimation has been received from Dy. C.I.T., Central Ci....

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....ooks of accounts. The AO has exhibited the details of such transaction on page-4 of his assessment order and on page- 5, he has made the year-wise analyses and thereby made the additions of Rs. 16,76,295/- in A.Y. 2007-08 and Rs. 68,78,239/- in A.Y. 2008-09 u/s. 69C of the Act. 3. The assessee carried the matter before the Ld. CIT(A). Before the Appellate authority, it was stated that the entire assessment is erroneous on factual errors. The detailed submissions of the assessee were transmitted to the AO for his remand report. The AO furnished the remand report vide letter dt. 8.2.2013. In his remand report, the AO stated that inspite of several opportunities given to the assessee, the assessee did not submit any concrete and satisfactory ....

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....at such entries are less than Rs. 5 lakhs therefore in the interest of justice, it will be reasonable to treat Rs. 5 lakhs as unexplained expenditure. Accordingly, the addition made by the AO for unexplained entries in the seized diary was restricted to Rs. 5 lakhs only. 4. Aggrieved by this, the Revenue is before us. 5. The Ld. Departmental Representative strongly supported the assessment order relying upon each and every findings of the AO. 6. Per contra, the Ld. Counsel could not advance anything new other than what has been advanced before the First Appellate authority. 7. We have given a thoughtful consideration to the findings of the AO and the findings of the Ld. CIT(A) qua additions. With the assistance of the Ld. Counsel, we ha....

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....ccount of freight charges. Against these receipts, the assessee has claimed various expenses. The major expenses were claimed under the head freight expenses, bank interest. The assessee was specifically asked to produce the necessary bills and vouchers in support of expenses claimed. The AO observed that the assessee has not produced satisfactory evidences as most of the expenses debited to profit and loss account towards freight charges were incurred in cash. The AO found that the ratio of cash payments and cheque payments is 80:20. As proper bills and vouchers were not produced, the AO disallowed 10% of the expenses claimed and made an addition of Rs. 15,49,773/- in assessment year 2007-08 and Rs. 24,60,075/- in A.Y 2008- 09. 9. The ass....