2015 (11) TMI 60

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Tax (Appeals) - 7 ['the CIT(A)'] erred in confirming the addition of 3,35,134 on account of purchases for the purpose of the Appellant's business by completely regarding the basic fact that no business could be carried out without effecting purchases. 2. The Appellant therefore prays that the purchases made for the purpose of the business be allowed and the addition of Rs. 3,35,134 be ordered to be deleted from thee Appellant's total income. Ground II. 1. On the facts of the case and circumstances and in law, the learned CIT(A) erred in confirming the addition of Rs. 2,14,000 on account of friendly loans from three relatives on the wrong assumption by the Id. CIT(A) that the Appellant had offered the amount represent....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....25% or so. The assessee submitted that it had made sundry purchases of Rs. 3,35,134/- on ready cash payment from grey market at Lamington Road, Mumbai. Since the purchases are made for small amounts and not from the established dealer, the assessee could not get the bills but the purchases are genuine. 4. The CIT(A) rejected the contention of the asessee and stated that the assessee has already admitted before the assessing officer on 16.12.2010 that no proof and details are available with respect to these purchases and hence the addition of Rs. 3,35,134/- as made by the assessing officer was confirmed by the CIT(A). 5. Aggrieved by the order of the CIT(A), the assessee is in appeal before us. The assessee submitted that he has duly filed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....until the assessee prove by cogent evidence's that the expenses are incurred wholly and exclusively for the purpose of business or profession carried on by the assessee . Since , the assessee could not produce any cogent material even before us to establish that the said expenditure is neither capital expenditure nor personal expenses of the assessee and is incurred wholly and exclusively for the purpose of business or profession carried on by the assessee , we find no error or illegality in the orders of the authorities below and the same are hereby upheld and the contentions of the assessee are hereby rejected . Thus, the addition of Rs. 3,35,134/- made by the assessing officer and as confirmed by the CIT(A) is hereby confirmed. We order ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see and the assessee is not able to produce loan confirmations nor parties are produced for verification before the assessing officer and hence the additions made by the assessing officer was confirmed by CIT(A). 11. Aggrieved by the order of CIT(A), the assessee is in appeal before us and reiterated its submissions and stated that these loans were taken from close relatives and he has submitted the information such as confirmation letters before the CIT(A) and the assessing office while the same has not been taken on record by both the authorities below. 12. Ld. DR relied upon the order of authorities below. 13. We have considered the rival submissions and carefully considered the relevant material on record. The assessee has claimed th....