TaxTMI 
TaxTMI 
2016 (7) TMI 1131
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....nce of any business expediency of such expenses. 4. The appellant craves to amend modify, alter, add or forego any ground of appeal at any time before or during the hearing of this appeal" 2. The Assessing Officer completed the assessment for the year under consideration at an income of Rs. 3,46,08,362/- as against returned income of Rs. 2,74,11,307/-. The AO made an addition of Rs. 57,72,733/- on account of amount treated as unexplained receipts. As per the assessment order, during post-search enquiry it came to the notice of the department that assessee has got cheques/ demand drafts from various parties. 3. In order to verify this, a survey was conducted at the premises of M/s Kalra Papers Pvt. Ltd. During the course of the survey some loose papers were found whereby it was noticed that cash amounting to R.56,33,966/- has been received and cheques of Rs. 57,72,733/- were issued in favour of M/s Super Plastic Coats Pvt. Ltd. Not being satisfied with the reply of the assessee the AO treated the cheque amount of Rs. 57,72,733/- as income of the assessee. 4. The learned CIT(A) has deleted the said addition holding that the cheques given by M/s Kalra Papers Pvt. Ltd. are ....
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....y M/s Kalra Papers (P) Ltd. If they claim that the cash was received from the appellant, the appellant will be confronted with this fact and allowed an opportunity to crossexamine M/s Kalra Papers (P) Ltd. unless these actions are taken, entries in documents found in possession of M/s Kalra Papers (P) Ltd. cannot be held adversely against the appellant. It is also noted that in the similar matter of entries taken by the appellant from one Sh Ravinder Yadav in lieu of cash sales to third parties, Sh. Yadav has been held to be the beneficial owner of the transactions routed in his various bank accounts and the peak credit in the bank accounts, along with the profits of the business and the accruals to / increases in the balance sheet of M/s R V Traders, was brought to tax in his hands. Thus, it is to be examined as to how the sales by the appellant to M/s Kalra Papers (P) Ltd. and cash received by M/s Kalra Papers (P) Ltd. as indicated by the documents impounded during survey have been recorded in the books of account of M/s Kalra Papers (P) Ltd. It is also to be examined as to how and to whom M/s Kalra Papers (P) Ltd. has sold the goods purchased from the appellant and whether the s....
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....eover there was fringe benefit tax applicable and hence this addition cannot be sustained. 10. Aggrieved by the order of the learned CIT(A) the Revenue is in appeal. It was submitted by the learned CIT(DR) that the learned CIT(A) was not justified in deleting the above said disallowance on the ground that the provisions of fringe benefit tax are applicable. It was submitted that the fringe benefit tax stands abolished for the year under consideration and the learned CIT(A) was not justified in giving benefit to the assessee on account of fringe benefit tax. 11. In reply, it was submitted by the learned AR that these expenses have been incurred for the purposes of business as is evident from the explanation. It was further submitted that the credit card is only a facility like bank. The assessee instead of making payment in cash can make the payment in respect of the expenses incurred for and on behalf of the company through credit card. It was also pointed out that the AO has not pointed out the nature of the expenses so as to suggest that these are personal expenses. 12. We have considered the arguments advanced by the parties in view of orders of the authorities below. O....
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....IT(A). It was further submitted that in any case when the assessee has booked less expenditure by making some claims against the supplier, the addition cannot be made of the difference of amount short booked as assessee itself has claimed lesser expenditure. It was further submitted that this difference of Rs. 1,22,985/- during the year is the less expenditure on account of purchases claimed by the assessee and hence the action of the learned CIT(A) in sustaining the addition is untenable. 14. In reply, the learned CIT(DR) submitted that since assessee has failed to reconcile the account and the learned CIT(A) was justified in making the addition. 15. We have considered above submissions and have gone through the assessment order and the order passed by the learned CIT(A). It is an admitted fact that assessee has been making purchases from M/s Jindal Poly Films Ltd. Further there is no allegation that the purchases made by the assessee are excessively booked. The learned CIT(A) has made a table for the 7 years which reads as under:- (Amounts in Rupees) Financial Year Purchases of Super Plastic (Appellant) Discount (as per appellant) N. Purchases of appellant ....