TaxTMI 
TaxTMI 
2015 (12) TMI 762
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....ncern M/s. J.N. Traders and Jay Netai Bhander. The return of income for the year under consideration was filed by him on 31.10.2007 declaring total income of Rs. 2,51,520/-. During the course of assessment proceedings, it was noticed by the AO from the confirmation received from M/s. VST Industries Ltd., one of the suppliers of the assessee that credit notes totaling to Rs. 18,53,325/- were issued by the said party in favour of the assessee during the year under consideration and the same were adjusted against the amount payable by the assessee against the purchase made from the said party. It was further noticed by the AO that the assessee in his books of accounts however had accounted for the credit notes only of the value of Rs. 16,46,01....
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....t completed under section 143(3) vide an order dated 30.12.2009. 3. Against the order passed by the AO under section 143(3), appeal was preferred by the assessee before the ld. CIT(A) disputing all the three additions made by the AO. During the course of appellate proceedings before the ld. CIT(A), reconciliation statement was furnished by the assessee explaining the difference in the amount of credit notes accounted for in his books of accounts and the amount of credit notes as per the confirmation of M/s. VST Industries Ltd. as under: "Total credit note as per assessee books of account Rs.16,46,019.41 Add: Advance payment to VST DSL Co.Pvt . Ltd. and shown in the books of account's for 06-07 A.Y. which has been adjusted by cre....
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....by Shri S. Debnath duly acknowledged by the concerned I.T. authority was also filed by the assessee. When the said copy was forwarded by the ld. CIT(A) to the AO, the latter did not make any adverse comments thereon except stating that the same was not produced by the assessee during the course of assessment proceedings inspite of sufficient opportunity afforded to him. The ld. CIT(A), however did not find the photo copy of form 15G filed by the assessee as admissible evidence as the same was only a photo copy and there was no original copy filed by the assessee. Accordingly, he confirmed the disallowance made by the AO under section 40(a)(ia) on account of interest paid by the assessee to Shri S.Debnath. Similarly, the addition made by the....
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....ls) was not at all justified in confirming the addition of Rs. 29,500.00 on account of low drawings without considering the written submission & rejoinder given at the appellate stage & remand stage by the humble appellant. 5) For that both the Ld. C.I.T. (Appeals) and the Ld. LT.O. erred both in points of law and on facts. 6) For that the humble appellant craves leave to take additional grounds and amend grounds at the time of hearing." 4. I have heard the arguments of both the sides and perused the relevant material on record. As submitted by the ld. Counsel for the assessee. Ground nos. 1,5 and 6 raised in this appeal of the assessee are general in nature, which do not call for any specific adjudication. 5. As regards the iss....
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....t justified to confirm the same without appreciating the reconciliation statement filed by the assessee explaining the difference in the amount of credit notes. In that view of the matter, I delete the addition made by the AO and confirmed by the ld. CIT(A) on this issue and allow ground no.2 of the assessee's appeal. 6. As regards the issue involved in ground no.3 relating to the disallowance of Rs. 1,08,000/- made on account of interest on unsecured loan under section 40(a)(ia) of the Act for non-deduction of tax at source, it is observed that the said disallowance was made by the AO due to failure of the assessee to file during the course of assessment proceedings form no.15G claimed to be issued by Shri S. Debnath, the recipient of t....