TaxTMI 
TaxTMI 
2016 (3) TMI 677
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.... b) The Learned A.O. having passed the Asstt. Order dated so 30th November 2010 by proper application of mind could not legally be interfered with by the Ld. Commissioner of Income Tax. c) Various observation made particularly in Para 7 at Pages 7-16 of the impugned order u/s 263 are either incorrect or legally untenable. d) The Ld. Commissioner of Income Tax had exceeded her jurisdiction to invoke section 263 in the facts and circumstances of this case there by ignoring the submission made and documentary evidence filed by the appellant before the A.O. in the course of Assessment Proceedings and again before her by the appellant. e) Provision of Sec. 145(3) are not applicable to the facts of applicant case and the Ld. Commissioner of Income Tax has invoke them without any proper justification. 2. That impugned order u/s 263 deserves to be cancelled. 3. That without prejudice to the above ground the addition of Rs. 2,95,58,101 as made by Ld. Commissioner of Income Tax is arbitrary unjust illegal at any rate without prejudice, the addition is made very excessive. 4. Direction issued by Ld. Commissioner of Income Tax vide....
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....ereunder:- "1) As also mentioned by the Ld. CIT in the impugned order passed u/s 263, assessment order was passed u/s 143(3) dated 30/1112010 by ACIT, Circle 1, Meerut copy placed at page 54 of the paper book. 2) The Ld. CIT, Meerut issued a notice dated 12/02/2013, copy placed at pages 55 - 57 of the paper book to which Assessee had filed a reply dated 25/02/2013 alongwith the annexures mentioned therein copies placed at pages 58 - 128 of the paper book. 3) However, the Ld. ClT has passed the impugned order on 08/03/2013 by holding that the assessment order was found to be erroneous and prejudicial to the interest of Revenue and has made an addition of Rs. 2,95,58,101/- on account of alleged suppressed income as under:- a. Addition on account of inflated consumption of paper vide vide page-13 of impugned sec. 263 order. Rs. 3,00,00,000 b) Less: Irtcome shown Rs. 7,37,800 Net addition made Rs. 2,92,62,200 Add: Other income (interest as shown in P & La/c): Rs. 3,35,901 Total income computed Rs. 2,95,58,101 Against the above order, the appellant relies on the following documents/submissions: ....
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.... 6. It is by now well settled that if an assessment order was passed by proper application of mind, the Ld. CIT could not invoke section 263 of the I.T. Act. The Appellant relies on the following case laws:- a) 263 ITR 437, Hari Iron Trading Co. ve. CIT (P & H High Court) b) 259ITR 502, CIT vs. Arvind Jewellers (Gujarat H.C.) c) 203 ITR 108 C1T Vs. Gabriel India Ltd., (Bombay H.C.). d) 243 ITR 83, Malabar Industrial Co. Ltd. Vs. CIT, (Supreme Court) e) 323 ITR 206, CIT vs. Development Credit Bank Ltd. (Bombay H.C.), f} 323 ITR 632, CIT VS. Design and Automation Engineers (Bombay) P. ltd. (Bombay H.C.). g) 320 ITR 674, CIT vs. Ashish Rajpal (Delhi H.C.). h) 171 ITR 141, CIT vs. Ratlam Coal Ash Co. (M.P. High Court i) 111 ITR 326 J.P. Srivastava & Sons Vs. CIT, (Jurisdictional Allhd. H.C.) j) 343 ITR 329, CIT vs. D.G. Housing Projects Ltd. (Delhi H.C.). k) 344 ITR 554, CIT vs. International Travel House Ltd. (Delhi H.C.). Therefore, section 263 order deserves to be cancelled because as demonstrated above, assessment order of the AO dated 30/11/2010 uls 143(3) was passed by pro....
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....ared better GP and NP rates during the year as compared to the preceding assessment years viz. 2005- 06, 2006-07 and 2007-08 - kindly see page 60 of the paper book. The GP and NP rate declared during the year were 23.69% and 0.68% respectively as compared to GP rates of 20.47%, 22.20% and 23.01 % and NP rates of 0.28%, 0.25% and 0.4% in the assessment years 2005-06, 2006-07 and 2007-08 respectively which had been accepted by the Revenue by passing assessment orders uls 143(3). 12. No justification subsisted on the part of the ld. CIT to invoke section 145(3) of the I.T. Act. She is also wrong in saying in last para at page 9 of the impugned order that the purchases and expenses debited to the P & L Alc were highly inflated without bringing any evidence on the record of such alleged inflation. 13. As regards non showing of any opening or dosing stock of paper, the Ld. CIT is factually incorrect because the Assessee had duly shown opening stocks as under: Books : Rs.34,36,337 Paper .: Rs.11 ,68,450 Semi finished : Rs. 5,30,478 Total : Rs.51,35,265 For details filed before the authorities below, kindly see pages 47 - 48 of t....
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....the consumption' of paper shown by the Assessee at Rs. 5,92,52,253/- are factually incorrect and are based on here mere ipxi dixit. Similarly, further observations made by the ld. CIT regarding the printing of books in which A grade paper was considered to have been used are also factually incorrect. Such observations are nothing but bald statement made by the Ld. CIT without bringing any supporting evidence on the record and without confronting the same to the Assessee in the course of section 263 proceedings. 16. Further observations made by the Id CIT at page 13 that it is also not clear if 'sales' are credited at 'selling price' or at 'discounted' rate' which is a normal feature of this trade and in the absence of categorical answer to this and even after giving the assessee maximum margin of showing sales at discounted rate of 2/3 of the 'selling' price' the inflation of paper purchases come to Rs. 3 crores (Rs. 4.5 crores minus 1/3 of this) manifold on account of gross suppression of turnover and sales based upon consumption of paper shown as consumed in the publishing of books are also based on no evidence brought on recor....
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.... section 263 order. It is by now settled law that unless specific notice is issued u/s 263 on a particular issue, the same cannot be discussed or decided in section 263 order. The appellant relies on Delhi High Court judgment in 317 ITR 249 ClT VS. Countimeters Electricals Pvt Ltd in which it was held as under: "The Tribunal was also right in holding that the Commissioner did not even call for any explanation of the assessee and the issue of fulfillment of the conditions of section 80-IA had not been part of the show cause notice. Therefore, it could not form the basis for revision of assessment order under section 263". 19. Moreover, in response to section 263 notice, the appellant had filed a reply dated 25/02/2013 copy placed at pages 58-59 alongwith the following: a) Comparative chart of trading results page 60. b) Details of unsecured loans as on 31/03/2008 at page 61 alongwith confirmed copies of their accounts from pages 62 - 77 c) Details of sundry creditors at page 78 alongwith their complete confirmed copies of accounts at pages 79 - 128. The Ld. CIT had neither controverted nor disproved the above documentary evidence....
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....7 TT J 67, Ramakant Singh vs. CIT (lTAT Patna), relevant portion from page 68 is reproduced below: ~ . "Hence, it cannot be said that no enquiry was made by the AO in this regard. At the worst, it can be a case of inadequate enquiry but it is not a case of no enquiry as alleged by the Revenue. In the case of inadequate enquiry. by the AO, action under s. 263 is not permitted". 2. There is presumption of application of mind by AO where original/regular assessment has been made u/s 143(3) of I.T. Act and ,such presumption is rebuttable only on the basis of some material:- a) 333 ITR 547, CIT vs. Honda Siel Power Products Ltd. (Delhi H.C), in which it was held as under: "When a regular assessment is made under section 143(3), a presumption can be raised that the order has been passed upon an application of mind. No doubt, this presumption is rebuttable, but there must be some material to indicate that the Assessing Officer had not applied his mind". b) 297 ITR 99, CIT VS. Mahendra Kumar Bansal (Jurisdictional Allahabad H.C.), in which at page 100, it was held as under: "That for the assessment year 1983-84, the assessment had been ....
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....iate orders". b) 313 ITR 65, CIT vs. K.K. Construction Co. (Gujarat H.C.), in which hit was held as under: "Held, dismissing the appeal, that since all the necessary details were furnished to the Assessing Officer, there was no reason for the Commissioner to invoke the revisional jurisdiction under section 263 of the Act. The Assessing officer had taken a particular view on the basis of the evidence produced before him. On the basis of the evidence before the Assessing Officer and materials which were collected by the Commissioner in revisional proceedings, the Commissioner had taken a different view. However, in the revisional proceedings under section 263, it was not open for the Commissioner to take such a different view. There was nothing on record to suggest that the view taken by the Assessing Officer was unsustainable in law. [The Supreme Court has dismissed the special leave petition filed by the Department against this decision: See 313 ITR (St.)5- Ed.]". 5. If no defects had been pointed out in the account books, the same could not be rejected and no addition could be made to the income of the assessee:- a) 76 ITR 365, St. Tera....
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.... page 166, it was held as under: "That in deleting the addition by rejecting the account, the Commissioner (Appeals) and the Tribunal had followed the earlier decision in the case of the assessee for the assessment year 1993- 94 which was not shown to have been upset by any higher court. The deletion of the addition was justified". e) 75 ITR 207, RB. Bansi Lal Abir Chand Spinning & Weaving Mills vs. CIT (Bombay H.C.) f) 73 ITR 224, N. Raja Pullaiah Vs. Deputy Commercial Tax Officer, AP. High Court. g) 74 ITR 279, Vijaya Traders Vs. CIT, (Mysore H.C.) In Appellant's case, mere higher consumption of paper as alleged by the Ld. CIT was no ground to reject the accounts particularly when both the gross profit rate and net profit rate when compared with earlier years was better. Moreover, this issue was not mentioned by the Ld. CIT in her section 263 notice and therefore the same cannot be made the basis for addition of Rs. 3,00,00,000/- on account of inflated consumption of papers for which reliance is placed on Delhi High Court judgment in CIT vs. Ashish Rajpa 320 ITR 674 and CIT vs. Contimeteres Electrical Pvt. Ltd. 317 ITR 249. 6. Non ....
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.... view had been taken and not shown to have been challenged". 8. As regards increase in fixed assets made during the year under consideration, the same stands audited and certified alongwith depreciation as per Income-tax Act by the tax auditor (refer to page 26 of the paper book) and also stands verified by the AO from the books of accounts and bills of additions as produced before him during the course of assessment proceedings and placed at pages 115 to 126 of the paper book. Vide Sr. 22 of AO's letter dated 29/07/2010, copy placed at pages 36-38, such details of fixed assets were specifically sought for by the AO and the same were filed before vide letter dated 20/08/2010 kindly see Sr. No. 22 at page 42 of the paper book. 9. Regarding balance of Rs. 34,13,194/- with PNB as on 31/03/2008, the same stands included and reflected in the audited balance sheet amount of Rs. 37,16,410/- (kindly refer to page 5 of the paper book) as also explained before the AO vide letter dated 20/08/201 0 (kindly see page 39 of the paper book). The same was again explained before the Ld. CIT vide reply to section 263 notice dated 25/02/2013, copy placed at pages 58- 59 of the pa....
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.... ~ receipts of Rs. 10,39,27,634/-, profit of Rs. 7,05,7901- has been declared yielding NP rate of 0.679%. This was one of the reasons for selecting the case for scrutiny. However, the AO appears to have accepted the same without proper examination or inquiry. c) Further, the assessee has credited interest to the tune of Rs. 335,901/- in the P&L Alc which is income from other sources to be assessed separately. After excluding the same from the business income, the Net Profit further comes down from the marginal figure to a still low figure whereas as per the assessment order. c) GP and NP rate slightly higher than the OP and NP rates of immediate preceding year. This is apparently contradictory to the facts on the records. Fresh unsecured loans to the tune of Rs. 1,20,69,799/-, abnormal sundry creditors to the tune ofRs.3,80,20,903/- have been shown which were also the reason for selection of cases for scrutiny. The AO appears to have accepted the same without proper inquiry. d) Increase in fixed assets to the tune of Rs. 49,57,1 10/-- have been shown which was also to be looked into from different angles including the actual investment, date of actual use....
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....ources Add: Rs. 30, 80,000 Fixed Deposits made by way of Auto Sweep Transactions as discussed above. 4. In view of above, the order passed by the AO was found to be erroneous and judicial to the interest of revenue since at. the time of the assessment the AO was duty bound to call for such details and examine them. In the case of M/s. Malabar Industries, the Hon'ble Apex court has held that incorrect assumption of facts or incorrect application of law will satisfy the requirement of the order being erroneous. In the same category fall order passed without applying, the principles of natural justice or without application of mind. 5. The fundamental principles emerged from the Hon'ble Apex Court judgement in Malabar Ind. Co. Ltd Vs. CIT (2000) 243 ITR 83 (SC) include as follows: 1. An incorrect assumption of facts or incorrect application of law will suffice the requirement of the order being erroneous. 2. If the order is passed without application of mind, such order will fall under the category of erroneous order. 5.1. Further, it has been held in CIT vs. V.N.M.A. Rathinasabapathy Nadar, (1995) ....
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....recting the AO to make an order of assessment. ii. Gee Vee Enterprises vs. Addl.CIT, 99 ITR 375 (Del.) in which it is held that the Commissioner can regard the order as erroneous on the ground that in the circumstances of the case, ITO should have made further inquiries before accepting the statements made by the assessee in his return and it was observed that reason is obvious. The position and functions of the ITO are very different from that of civil court. 5.3. On the facts of the present case, it is evident that the AO accepted the version of the assessee without making any inquiry or verification, whereas it is very well settled that mere failure to make inquiries makes an order erroneous. In order that the Commissioner may consider an order to be "erroneous" for the purposes of section 263, error of law may not be apparent on the fact of the order. The Commissioner may consider an order of the AO to be erroneous not only if it contains some apparent error of reasoning or of law or of fact on the face of it but also because it is a stereo-typed order which simply accepts what the assessee has stated in his return and fails to make enquiries which are called ....
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.... upon aforesaid judgments has held that the facts of the case were in pari-materia with above judgments. Further, on consideration of these cases the Hon'ble ITAT viewed that the ld. CIT was right in exercising the revisionary jurisdiction dismissing the appeal filed by the assessee. 5.7. In view of the foregoing, it is evident that the order passed by the AO is erroneous ~ as well as prejudicial to the interests of revenue for the reasons as state~ above. 6. In the course of proceedings U/S 263 Shri Pankaj Gupta, FCA & counsel of the assessee attended and filed written submissions and the case was discussed with him. 7. As regards point (a) and (b) the assessee is a publisher of books. Against the gross receipts of Rs.I03927634/- it has returned an NP of merely Rs. 705790/- yielding the NP rate 0.679% one of the main reasons for which the case was selected for scrutiny was negligible NP rate. However the asst. record show that despite there being a large no. of discrepancies and despite their being the books of ale incorrect, incomplete and suffering from a no. of discrepancies provisions of s.145(3) have not been invoked and book results have been a....
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....y under the Company law but also under IT Act and the same renders entire books of accounts liable for rejection under section 145(3) of the IT Act as the book results are not at all verifiable or ascertainable or can be deducted from the same. As the final results and books of accounts are rejected under section 145(3) of the IT Act, 1961 on the grounds as discussed above are also not acceptable on their facts whereby a negligible profit has been shown whereas the purchases and expenses debited to the P&L Alc are highly inflated. The total sales shown by assessee are to the tune of Rs. 103927633/- (quantitative details not maintained as discussed above). Against the same the assessee has claimed purchases as under: From P&L Alc Purchases Rs. 5,92,52,253/- Assessee has shown opening as well as closing balance of finished and semi finished goods ofRs.51,35,265/- and 2568138/- respectively. It has not shown any opening or closing stock of papers. Nor is there any schedule for purchases and hence entire purchases are apparently shown as consumption and converting the same to at least semi finished stage which again does not appear to be cor....
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....and the consumption thereof based upon the size of sheet which are used for printing of books, the rates thereof during the year under consideration for 'A' grade paper which is considered to be the best quality paper for publishing of books shows that the assessee has inflated its purchases and expenses at least to the tune and magnitude of Rs. 4.5crores merely on the basis of paper stated to have been consumed vis a vis the paper which is actually consumed for the production of books as shown in the books of account. This inflation of expenses and thereby the suppression of profit by Rs. 4.5 crores is merely on account of inflated paper consumption on account of bogus or inflated purchases. In the event of working out the turnover of the assessee on the basis of such purchase of paper, the suppression worked out at Rs. 4.5 crores will increase since the books of alc of the assessee are not reliable and rejected as above, it is also not clear if 'sales' are credited at 'selling price' or at 'discounted rate' which is a normal feature of this trade. In the absence of a categorical answer to this and even after giving the assessee maximum mar....
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....Krishna Kumar Jbanb vIs ITO and Anr (Punjab & Haryana) 17 DTR 249 vii) M/s Sejai International Ltd vIs Cl'I' Meerut (All.) Appeal No.306 of2010. viii) CIT Vs Durga Prasad More, 82 ITR 540 (SC) ix) ClT Vs P. Mobnakala, 291 ITR 278 (SC) x) CIT Vs Sumati Dayal, 214, ITR 801 (SC) xi) ITO Vs Diza Holdings Pvt. Ltd. 255 ITR 573 (Kerla) (xii) CIT Vs Nova Promoters and Finlease Pvt. Ltd. 18 Taxmann 217 (xiii) V.I.S P. (P) Ltd. Vs. CIT (MP), 265 ITR 202 Further Reliance is placed on the following case laws:- CIT vs. Devi Prasad Viswanath Prasad (SC) 72 ITR 194 Kale Khan Mohammed Hanif vs. CIT (SC) 50 ITR 1 Ratancband Dipchand vs. CIT(MP) 38 ITR 188 , CIT vs. Maduri Rajaiahgari Kistaiah (AP) 120 IR 294 D.C.Auddy & Bros. vs. CIT Cal) 28 ITR 713 S. Kumaraswamy Reddiar vs. CIT (Ker) 40 ITR 590 Grover Fabrics (India) P. Ltd. Vs. CIT (P&H) 332 ITR 312 As regards (c) the entries in the fixed assets Rs. 4957110/- was to be looked into from different angles including actual investment, date of actual use, if any, admissibility of depreciation etc. an....
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....ed towards the end of this letter: 1. A detailed note on business activities and history of the case alongwith complete addresses of all offices including branch offices and sister concerns of the company. Please also furnish a copy of Memorandum & Article of Association. 2. Details of major shareholders of the company giving their percentage shareholding & their PAN & WardlCircle where they are assessed to tax. 3. Name & addresses oflall concerns, Firms, Companies etc, wherein the co. or any of its directors are interested! having substantial interest giving details of such interest, if any. 4. Give information in respect of assessed/returned income for the two preceding years alongwith photocopies of Balance Sheet and P & L A/c for A. Y. 2007-08 and also file a copy of last scrutiny assessment order. .' 5. Please give comparative figures of Turnover, Gross Profit, Net profit, G .P. rate & N. P. Rate for the last 3 Years alongwith justification thereof. 6. Details of the bank accounts/ FDs (with details of interest income) alongwith copies of bank statements & reconciliation, if any. 7. A copy of audit report along....
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...., rate of interest, TDS on the same. 19. Sales monthwise - partywise details. 20. Details of valuation of closing stock and closing stock-method of valuation authenticity of stock declared. 21. Material purchased-partywise details, item, amount. 22. Furnish bills for additions made to fixed assets and when the assets were put use for purpose of business. 23. Calculation of MAT liability as per s. 115JB. 24. Justify allowability of payment to persons specified u/s 40A (2)(b). 25. Complete details of the current liabilities. Give details of names & addresses of sundry creditors with copy of confirmed Nos. of parties with o/s balance exceeding Rs. 1,00,000/-. Also names & address of parties who have made advance against sale, date of sale. 26. Furnish copy of challan for prepaid taxes paid by you. Your case is fixed for hearing on date 20.8.2010 at 4.30 PM. Formal notice U/s 142(1) of the I.T. Act is enclosed herewith." 9. In response to the aforesaid letter/questionnaire dated 29.7.2010 assessee filed its reply dated 20.8.2010. For the sake of convenience, the contents of the reply are reproduced as under:- ....
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.... There are no Loans and Advances except for business purposes. No interest has been charged. The details of Advances to Supplies and Advances to Staff will be placed on the next date of hearing. 1 1. Provisions of Section 2 (22)(e) : No amounts have been advanced to Directors or to Concerns in which the Directors are interested, so the provisions of Section 2(22)(e) of The Income Tax Act, 1961, do not apply to the facts of the case. 12. Inventories: The detailed List of Inventories as at 31.3.2007 is at Page No.~ 83 to Page 84 The details List of Inventories as at 31.3.2008 is at Page No. 81 to Page No. 83 13. Monthwise details of Sales and Purchases: The Monthwise details of Sales are at Page No 80 to Page No . The Partywise details of Sales over Rs. 10 Lacs during the year are at Page No. 79 to Page No. - The Monthwise Details of Purchases are at Page No. 78 to Page No. - The Party wise Details of Purchases Over Rs. 10 Lacs during the year are at Page No .. 77 to Page No. -. 14. Expenses Claimed: The zerox copy of Ledger Print-out of Expenditure claimed (in exces....
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....rts of over Rs. 50,000 are at Page No 3 to Page No 29 23 . MAT Liability: Mat Liability is no there, as the Regular Income Tax is being paid; which is much more than 15% of the Income. . 24. Directors Salary : The details of Directors Salary during the year as well as in the last year are at Page No 2. There has been no increase in the Salary of Directors. 25. Sundry Creditors : These will be proceeded before your honour on the next date of hearing. 26. Challans for Prepaid Taxes: , The challans are at Page No 1. to Page No -" 10. After going through the aforesaid questionnaire / letter dated 29.7.2010 issued by the AO u/s. 142(1) and the Reply dated 20.8.2010 filed by the assessee, we are of the view that the AO has called various details/documentary evidence from the assessee to substantiate its claim mentioned in the return of income. No doubt that AO has directed the Assessee to furnish 26 queries, however, the main/effective queries were at Serial No. 8, 14, 15, 18 & 25. The main/effective queries asked by the AO and reply furnished thereto are discussed hereunder in the Tabulation Form:- 11....
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..... 2. The assessee is engaged in the business of publication of books. During the year under consideration the assessee has shown G.P. rate and N.P. rate of 23.69% and 0.35% respectively which is slightly higher than the G.P. and N.P. rates of immediate preceding year. Trading results declared including expenses debited by the assessee have been examined and verified on test check basis from the books of accounts, bills and vouchers produced and bank statements and various other details and documents submitted by the assessee from time to time. Hence no adverse inference is being drawn. 3. After discussion and considering all the material available on record income derived by the assessee is accepted and assessment is, accordingly, completed on total income of Rs. 737800/-. Charge interest uls 234B and 234C of the LT. Act, 1961. Give credit of prepaid taxes. Issue notice of demand and challan." 12. After perusing the aforesaid assessment order, Ld. CIT issued notice u/s. 263 of the I.T. Act to the assessee by pointing out the following:- (a) "The assessee is engaged in the business of publishing books etc. Against the gross receipts of Rs. 10,3....
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....ing to your Debit / Credit in the above Bank Alc at the, Close of Business on 31.03.2008 was Rs. 34,13,194.47 only." f) As per Page No. 354, Closing Bank Balance showed as on 31.3.2008 Rs. 33,194.47. But, as per the certificate given by the Bank Manager, at page No. 353 Closing Balance as on 31.3.2008 Rs. 34,13,194.47. There is contradictory difference in statements as given by the assessee and as given by the Bank Manager. It is clearly shows that the assessee had made Fixed Deposits by way of Auto Sweep transactions amounting to Rs. 30, 80,000/- from its Current Bank Account. The assessee had paid excess interest to the Bank. The Fixed Deposits of Rs. 30,80,000/- not reflected in Ledger Account of Bank Statement of Punjab National Bank (01.04.2007 to 31.03.2008) maintained by the assessee. Hence, Fixed Deposits Rs. 30,80,000/- made by way of Auto sweep transactions is to be added to the total Income of the assessee u/s 68 of the I.T. Act. Income computed as under: Net Income as per assessment Order Rs. 7,37,800/- Add: Interest Income under the head Rs. 3,35,901/- Income from Other Sources Add: Fixed ....
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....rmity with the accounting principles generally accepted in India. We further note that in the notes of account on the significant accounting policy the auditors have further categorically stated as follows: "The Company has not maintained the quantitative records of Raw Materials and Finished Goods and as such information as required in Para 3 and 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 have not been disclosed. " 14.2 It was further noted that as per para 2.3 the company did not disclose the names on small scale undertakings to whom it owed existing Rs.l lakh outstanding more than 30 days. Moreover, as per para 2.4 'the confirmation of balances of parties appearing under the heads unsecured loan, current liabilities, sundry debtors and loans and advances were also not obtained by the assessee and not shown to the auditors'. 14.3 We further find that the business results as shown by the assessee in its P&L Alc are not at all ~ ascertainable, verifiable or acceptable especially in view of the facts that no quantitative details have' been maintained or furnished which is a mandatory requirement not only under the Company law but also u....
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.... of Rs. 2,95,58,101/- which does not need any interference on our part, hence, we uphold the same. 15. As regards second part of point no. (b), is concerned, we find that Ld. CIT has observed that there are fresh unsecured loans to the tune of Rs. 12069799/- and abnormal sundry creditors to the tune of Rs. 38020903/- which were also the reason for selection of the case for scrutiny on the one hand while as such the assessee is duty bound and heavy onus lies on him to explain the credit entries including the liabilities appearing in its books of account by establishing identity, genuineness and creditworthiness of the alleged parties. In our considered opinion, this conclusion of the Ld. CIT does not need any interference, hence, we uphold the same. 16. As regards (c) is concerned, we note that Ld. CIT has noted that the entries in the fixed assets Rs. 4957110/- was to be looked into from different angles including actual investment, date of actual use, if any, admissibility of depreciation etc. and the AO has directed to enquire the same now. In our view the same also do not need any interference on our part, hence, we uphold the same. 17. As regards (d) is concerned, we f....
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....of intt. repayment & closing balance) of unsecured loans, cash creditors including sq. Up accounts alongwith their completer-addresses & their Deposits during the year along 85 to Page No. - The confirmation of Fresh with copy of Bank Pass Book asstt. Particulars. Please also furnish confirmed copies of Alcs therefrom. Please also furnish Bank Statements and copy of evidences regarding identity, their Income Tax Return for genuineness and creditworthiness of new loan Asstt. Year 2008-2009 will be creditors and sources of loans given by them. Submit details of expenses claimed by you. Please also establish business expediency of these expenses and produce bills/vouchers. Please also give details of expenses on which TDS has been deducted. produced on the next hearing. 14. Expenses Claimed: The zerox copy of Ledger Print- out of Expenditure claimed (in excess of Rs. 5 Document 2 Lacs in the year) are enclosed as under: Carriage Inward No. 64 to Page no. 76 Printing Expenses Page Page No. 64 to Page no.68. Binding Expenses Page No. 59 to Page no. 63 Lamination Page No....