TaxTMI 
TaxTMI 
2013 (4) TMI 825
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....at the learned CIT(Appeal) has erred in law & on facts in restricting the extra profit addition of Rs. 25,52,920/- made by the Assessing Officer @ 10% N.P. of estimated turnover Rs. 2,60,00,000, to @ 1% N.P. of turnover shown by the assessee i.e. Rs. 2,48,62,028/- without appreciating the facts mentioned by the Assessing Officer. 3. That the learned CIT(Appeal) has erred in law and facts in deleting the addition on account of sundry creditors of Rs. 33,70,172/- 4. That the Ld. CIT(A) has erred in law & on facts in deleting the addition on account of unsecured loan of Rs. 13,00,000/-." 3. The brief facts of the case are that the assessee company is engaged in the business of transportation. The Assessing Officer at his o....
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....account on the basis of accepted accounting system followed from year to year. The books of account is also subject to audit. Copies of audited report and financial statement have been placed at page nos.2 to 37 of the assessee's Paper Book. The Assessing Officer did not point out any specific instance or basis for estimation of turnover from Rs. 2,48,62,028/- to Rs. 2,60,00,000/-. The Hon'ble Rajasthan High Court in the case of CIT vs. Gotan Lime Khanij Udhyog, 256 ITR 243 (Raj.) wherein it has been held that the relevant provisions do not envisage that by restoring to best judgment assessment the Assessing Authority must reach a different figure of income or profit than what has been disclosed by the assessee. The assessee has explain....
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.... of 10% as applied by the Assessing Officer. The Revenue has failed to point out any contrary material to the finding of CIT(A) nor the same is available on record. Under the circumstances, we are inclined to uphold the order of CIT(A). Order of the CIT(A) is confirmed on the issue. 7. The second addition made by the Assessing Officer is of Rs. 33,70,172/- on account of Sundry Creditors. During the assessment proceedings, the Assessing Officer noticed that in the Balance Sheet the assessee has shown Sundry Creditors of Rs. 33,70,172/- and the same was added on the ground that the assessee has failed to establish it. Therefore, the same was treated as bogus. 8. The CIT(A) followed the judgement of Hon'ble Allahabad High Court in th....
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....sportation service provider and his copy of account is at page 48- 50 of the Paper Book. All payments are through cheques. 3. Sri Sant Agrawal - copy of account is at page 51 of the paper book. The amount was opening balance out of which Rs. 3 lacs were paid through Cheque and remaining amount is cleared next year. No addition is made during the year. 4. M/s Sushil Kumar Kandoi and Co. (PAN ADUPK 1937H) - the dues against C.A. Firm which is cleared next year after proper TDS. Copy of account is at page 52 of the paper book. 5. Salary and Khoraki Payable - copy of account is at page 53 of the paper book. This is a normal business practice and the amounts are disbursed in the next month. 6. Union Bank of In....
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....ng Officer and furnished books of account, audited report and financial statements. The Assessing Officer without pointing out any specific item of Sundry Creditors which the assessee was not able to establish. The A.O. made the addition of entire Sundry Creditors which is not in accordance with law. Sundry Creditors always represents day-to-day expenditure or transaction which were recorded in the books of account. The entire Sundry Creditors shown in the Balance Sheet cannot be held as bogus liability unless each and every transaction and sundry creditor is examined and relevant facts are put on record. The Assessing Officer merely on the basis of presumption made addition which is not sustainable in law. Contrary to that, the assessee ha....
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....nt of unsecured loan. During the assessment proceedings, the Assessing Officer noticed that the assessee has shown unsecured loan f Rs. 25,78,789/-. The Assessing Officer further noticed from schedule B of Auditor's report that Rs. 13,00,000/- being loan taken from Shri Ajay Kumar Kejriwal. The Assessing Officer made the addition of Rs. 13,00,000/- on the ground that the assessee has failed to establish the creditworthiness of the depositor. The CIT(A) following the judgement of Hon'ble Allahabad High Court in the case of CIT vs. Gaghvendra Pratap Singh (supra) deleted the addition. 12. We have heard the learned Representative of the parties and records perused. In the light of detailed discussion made while deciding ground no.3 pert....