TaxTMI 
TaxTMI 
2015 (12) TMI 841
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....de u/s.2(22)(e) of the Act to the extent of Rs. 1,88,065/-. ii) The ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 3,08,041/- made out of interest expenses u/s.36(1)(iii) of the Income Tax Act. iii) The ld.CIT(A) has erred in law and on facts in holding that the Assessing Officer had erred in rejecting the book result even when the Assessee had not maintained quantitative details of raw material, finished goods and shrinkage/wastage and had not maintained stock register. iv) The ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 33,59,168/- made on account of suppression of production. v) The ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 24,33,112/- made on acco....
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....f Rs. 1,88,065/-. The ld.Sr.DR submitted that the ld.CIT(A) was not justified in deleting the addition. He supported and relied upon the finding of the AO. 3.1. On the contrary, the ld.counsel for the assessee placed reliance on the order of the ld.CIT(A) and submitted that ld.CIT(A) has given a finding on fact. The ld.counsel for the assessee submitted that the AO was not justified in making the addition. 4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has given finding on fact in para-3.2 of his order as under:- "3.2 I have carefully considered the rival contentions. It is seen that the A.O. had discussed in detail about th....
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....13,00,000/- on 23.10.2008. As per the provisions of sec.2(22)(e) the accumulated profits for the purpose of 2(22)(e) is to be taken as on 23.10.2008 and not as on 31.3.2009 as adopted by the Id. A.O. The facts available on record further indicate that M/s. K.V. Fashions Pvt. Ltd. started its business from 1.10.2008. During the year under consideration M/s. K.V. Fashions Pvt. Ltd. has earned a profit of Rs. 2,25,678/-. This way it can be said that M/s. K.V. Fashions has earned a monthly profit of Rs. 37,613/- (Rs.2,25,678 / 6). In view of these facts, it can be said that M/s. K.V. Fashions Pvt. Ltd. was having accumulated profit of Rs. 37,613/- at the end of October, 2008. This way the accumulated profit as on 23.10.08 can at the most be tak....
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....s. 3,08,041/-. The assessee has given loans and advances of Rs. 1,17,30,982/-. 5.1. On the contrary, the ld.counsel for the assessee submitted that the finding of the AO is misplaced. She relied on the order of the ld.CIT(A) and submitted that the assessee was having sufficient interest-free funds. The ld.counsel for the assessee further submitted that it is evident from the finding of the AO that he has not established any nexus between the interest-bearing borrowings and interest-free lendings. 6. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has given a finding in para-4.7 of his order that the assessee has got huge interest....
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....(A). She submitted that due to nature of business, it was certified by the Auditor of the assessee that the maintenance of stock register was not possible. 8. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has not upheld the book of account on the ground that during the course of assessment proceedings the assessee has furnished details of sales and purchase, quantitative monthly summary of grey cloth and finished cloth sales. The details of income and expenditure were also available on record. The AO has not found any specific details either in the book of accounts or in the details furnished by the appellant. The ld.CIT(A) obse....
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....3%, whereas in the year under appeal the assessee had declared the yield at 94.70%. The ld.CIT(A) has given a finding on fact as under:- "The cost of suppressed production at the rate of Rs. 211.9 per meter as adopted by the A.O. is apparently wrong. The facts available on records indicate that the appellant manufactured 7,77,184 mtrs of cloth on his own account. This cloth was sold for a sale consideration of Rs. 1,86,31,031/-. This way the average selling price of cloth manufactured by the appellant works out to Rs. 23.96 per meter (18631031 / 777184). Thus the cost of production of cloth cannot be more than Rs. 23.96 per meter. It is seen that the A.O. has taken cost of production at Rs. 17,39,12,483 [cost of raw material of Rs. 12,56,9....