TaxTMI 
TaxTMI 
2017 (3) TMI 885
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....ition on account of bogus purchases of Rs. 34,59,518/-.( Ground No.1.1 to 1.6) 2) If Ld. CIT(A) erred in confirming the disallowance of claim under section 80G of Rs. 30 lakhs. (Ground No.2.1 to 2.2) 3) If Ld. CIT(A) erred in confirming the disallowance of Rs. 60,000 on account of interest paid to partner. 3. Brief facts of the case are that assessee is a partnership firm engaged in the business of manufacturing and supply of laboratory equipments for pharmaceutical industries in India as well as abroad, filed its return of income for relevant assessment year on 29.09.10 declaring total income of Rs. 4,64,07,330/-. The assessment was completed under section 143(3) on 14.02.13. The AO, while framing assessment order, besides the other ad....
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....during the first appellate stage only. 5. We have considered the rival contentions of the parties and perused the orders of authorities below. During the assessment proceedings the AO noticed that the assessee purchased material from the parties who were tainted as per the details available on the website of Sale tax department Government of Maharashtra. The assessee purchased the maximum quantity of material form following parties. (i) M/s. Vitarag Trading Company,(ii) M/s. Sampark Steels,(iii) M/s Bhagwati Trading Company, (iv) M/s. Prayan Trading Company and(v) M/s. Om Corporation. 6. The AO deputed the Inspector for verification of the parties and purchases and to serve the summon under section 131. The Inspector after investigation r....
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....pany. However, he failed to file similar detail of those two firms. Thus, on the basis of details of purchases made viz. the purchases of Rs. 8,16,244/- from Sampark Steel, Rs. 6,94,824/- from M/s. Prayan Trading Company and Rs. 11,82,230/- from M/s. Vitarag Trading Company and on the basis of information gathered from Sales Tax Authority, the AO disallowed the entire purchases of aggregate amount of Rs. 26,93,298/-. The AO, on the basis of affidavit dated 23.05.11 furnished to Maharashtra Sales Tax Department by Shri Manoj Anantrai Buch, partner of M/s. Bhagwati Trading Company that he has not made any genuine business of sale or purchase of any kind of goods such as M.S. Round, Aluminum sheets, M.S. Seamless, Copper Strips etc. and that h....
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.... documents while furnishing the remand report. After considering the contention of the assessee and remand report the Ld. CIT (A) rejected the admission of additional evidence. Though the ld CIT(A) himself directed the assessee to file certain evidences. The ld CIT (A) not considered the evidences which was filed in compliance of his direction. We are of the considered opinion that ld CIT(A) wrongly rejected the admission of additional evidence. Hence, we admit the additional evidences filed by the assessee and remand this ground of appeal to the file of AO to consider the issue afresh and pass order in accordance with law. Needless, to order the AO shall grant sufficient opportunity of hearing the assessee before passing the order. In the ....
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....niversity. Assessee vide reply dated 26.12.12 contended that Shri Anik Marfatia, son of Mrs. Amita Marfatia one of partners, has taken admission for MD course in Padmashree Dr. D.Y. Patil University. The total donation of 60 lakhs has been made i.e. Rs. 30 lakhs from the firm and Rs. 30 lakhs from associate firm i.e. M/s. Electropharma in which Mr. Amit Marfatia, husband of Mrs. Amita Marfatia are partners. On the basis of the reply furnished by assessee, the AO concluded that the donation was not voluntary but is an expense incurred by partner for securing admission of her son for Postgraduate Medical course and accordingly disallowed the donation of Rs. 30 lakhs. The Ld. CIT(A) during the appellate proceeding concluded that the motto of a....
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.....3 relates to disallowance of interest expenses of Rs. 60,000/- paid to partner. The Ld. A.R. of the assessee argued that AO disallowed the proportionate interest paid on the credit balance of partner. The Ld. A.R. of the assessee further argued that the donation made to the university was lawful and the assessee was entitled to claim deduction, moreover the drawing was not a personal drawing of the partner concerned. On the other hand, the Ld. D.R. for the Revenue supported the order of the authorities below. 10. We have considered the rival contention of the parties and considered the orders of authorities below. The AO disallowed the interest holding that payment of Rs. 30 lakhs paid on account of gift represents the personal expenses o....