TaxTMI 
TaxTMI 
TaxTMI 
2015 (10) TMI 1624
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....o Revenue's former ground seeking to restore brokerage disallowance of Rs. 17,06,271/-. The assessee-firm's]business is in trading and brokerage of yarn. It had shown the impugned brokerage sum in its profit and loss account. Its turnover reads Rs. 22,98,81,728/- as against preceding assessment years turnover of Rs. 7,97,28,391/-. It did not claim any such brokerage in the preceding assessment year. The Assessing Officer viewed the assessee's claim of brokerage in question as an attempt to minimize profits. He inter alia noticed that the necessary bills placed in the case file did not prove any brokerage service rendered, there was no rationality of the amounts paid and most of the payees were assessee's related parties. 3.....
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....o dispute that the appellant's business has expanded tremendously - the turnover going up three times, from approximately Rs. 8 crores to approximately Rs. 23 crores. The appellant provided full details of brokerage expenses incurred. These evidences included, name, address, PAN, return of income, statement of accounts and details of sales made through brokers. The appellant also explained the services rendered by the brokers and the reason why the accounts are settled at the end of the accounting period when payments were made afterdeducting tax at source. The A.O. has not carried out any investigation to show that the evidences provided by the appellant were not correct and that the claim of expenses was not genuine. The A.O. has reli....
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....maining sum of Rs. 40,000/- came from another HUF Rameshbhai R. Pansuria. The Assessing Officer noticed thatcash deposits were made in both of their bank accounts and on the next, impugned loans were given. He also observed the nature of their profit and loss account as they had shown textile business income in income side and claimed conveyance, stationery and professional fees on the other side. Bank account of these creditors also allegedly demonstrated nominal balances except in the last week of the year. The Assessing Officer doubted genuineness / creditworthiness of the assessee's explanation and invoked section 68 of the Act for treating the impugned deposits of Rs. 1 lac as unexplained cash credits. 7. The CIT(A) has deleted th....