TaxTMI 
TaxTMI 
2013 (1) TMI 819
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....to addition of Rs. 37,65,836/- on account of purchases from M/s. Gopal Enterprises and second effective ground is in respect of disallowance of interest of Rs. 2,55,536/-. 3. The brief facts of first ground of appeal are that the assessee derives income from trading business of zips for shoes etc. During the assessment proceedings, the A.O. noticed that the assessee purchased goods worth Rs. 38,68,137/- from M/s. Gopal Enterprises. Out of that purchases, payments were made only for Rs. 7,50,000/- and rest of the balance amount has been shown as outstanding. The A.O. called information under section 133(6) from the Assistant Commissioner of Commercial Tax, Agra regarding Sales Tax return of M/s. Gopal Enterprises. Statement of Shri Ram Gopa....
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....sessee made submission on merit as well as on alternate submission relying on the decision of I.T.A.T., Ahmedabad Bench in the case of Vijay Protein vs. ACIT, 55 TTJ (Ahd.) 76. The CIT(A) did not accept the assessee's contention on merit as well as on alternate contention including the decision of I.T.A.T., Ahmedabad Bench in the case of Vijay Protein (supra) distinguishing the said order that in that case material in question was found to have been received and without receiving such material it would not have been possible to carry out production and such is not the case of the assessee. The CIT(A) was of the view that the addition of whole gross amount is warranted as the assessee has failed to discharge the onus. However, the CIT(A) all....
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.... Ram Gopal Sharma is employee of the brother of assessee and not an independent trader whereas the assessee has furnished sufficient evidence in the form of Bank account, copy of Sales Tax return etc. In the alight of the fact, the addition of purchases is not warranted unless it is found that the assessee has made the bogus entry of purchases for reducing the profit. If we consider the comparative position of G.P., we find as under :- A.Y. 2004-05 9.11% A.Y. 2005-06 9.17% A.Y. 2006-07 9.4% A.Y. 2007-08 9.00% A.Y. 2008-09 9.00% 7. On consideration of above comparative G.P. position, we do not find substance in addition made by the A.O. Even if for the sake of argument, if we accept the view of Revenue Authorities, then ca....
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....discussion, we confirm the addition of Rs. 5,00,000/- out of the addition of Rs. 37,65,836/- sustained by the CIT(A). In other words, we delete the addition of Rs. 38,68,137/- made by the A.O. and confirm the addition of Rs. 5,00,000/- made by the A.O. 8. The second effective ground is in respect of interest of Rs. 2,55,536/-. During the assessment proceedings, the A.O. noticed that the assessee has paid interest of Rs. 2,55,536/- to Smt. Renu Jain. The A.O. made the addition as under :- (Page no.9) "The reply of the assessee is not acceptable. Assessee has submitted that he had taken loan of Rs. 20,75,000/- from Smt. Renu Jain in his individual capacity and not for the business of M/s Jain International, Agra. Therefore, as per the repl....
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....nsferred entry. Thus the capital in the hands of M/s. Jain International of whom Shri Shanti Swaroop Jain is Proprietor had increased as it was require to be increased for the purpose of business. However, in personal set of Balance Sheet of Shri Shanti Swaroop Jain the amount of Rs. 8,00,000/- was shown as credit balance in the name of Smt. Renu Jain. The entries in the propriety business and partnership firm were only for the purpose of business. The ld. Authorised Representative demonstrated this fact that the assessee has in fact taken loan from Smt. Renu Jain and the same was utilised for the purpose of business. He drew our attention to page no.82 where copy of individual Balance Sheet as on 31.03.2008 of Shri Shanti Swaroop Jain has ....