2015 (10) TMI 1873

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the income from other sources. ii. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing." 2. Briefly stated the facts of the case are that the respondent assessee is a company duly incorporated under the provisions of Companies Act, 1956. It is engaged in the business of manufacturing, trading and sale of alcoholic beverages, mainly beer for domestic consumption. During the year under consideration, the respondent assessee was in process to establish the industry for manufacturing of beer. That apart, the respondent assessee claimed that it had carried on their trading activity during the year under consideration. The return for the assessment year 2008-09 was filed on 26th Septem....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t the appellant was setting up a manufacturing plant. It is evident that the appellant has carefully identified expenses attributable to manufacturing of beer through 3rd party collaborative arrangement, and capitalised expenses worth Rs. 52,75,832. The balance amount which did not relate to the collaboration has been claimed as routine business expenditure of the company. The AO had questioned veracity of High Sea Sales of a beer consignment to arrive at the conclusion that there was no business during the year, by holding such High Sea Sales as sham. The Ld. AR in this regard provided various evidences in support of the High Sea Sales transaction by which the appellant had traded one consignment of beer. The Ld. AO was of the view that th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iled wherein a copy of the invoice is placed. From this invoice, it is clear that the invoice is dated 5th February, 2008 and he submitted that the transaction of purchase and sale is sham and therefore the loss resulting from such transaction cannot be allowed to be set off against the income from other sources. 5. On the other hand, the authorized representative placed reliance on the order of ld. CIT(A) and submitted that the purchases were made prior to the sales and submitted that the date of dispatch of the first consignment containing 504 cases by the vendor is 14.12.2007 and the date of sale by the assessee company to his customer is 20th December, 2007 and in the case of second shipment of 1296 cases, the date of dispatch by sup....