TaxTMI 
TaxTMI 
2017 (4) TMI 571
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....d purchase u/s 69C of the Income Tax Act, 1961 and in directing the Assessing Office to consider only the addition of the peak of financial transaction. 2. That the Commissioner of Income Tax (appeals) erred in law and on facts of the case in deleting the addition of Rs. 346294/- made by the Assessing Officer by way of disallowance of expenses claimed and in directing the Assessing Officer by way of disallowance of expenses claimed and in directing the Assessing officer to consider only the addition of the peak of financial transaction." 3. Brief facts of the cases that assessee is a company which dealing in wholesale trading of fabrics, textiles and Gen foods etc, filed its return of income on 05/01/2009 in response to notice under s....
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.... as unexplained expenditure and added to the total income of the assessee under section 69C of the act of Rs. 8517740/- on account of purchases and Rs. 346294/- on account of administrative expenses. On that basis assessment under section 143 (3) was framed on 31st. December 2010 at Rs. 8868994/-. Aggrieved by the order of the Ld. assessing officer the assessee-preferred appeal before the Ld. CIT (A) who in turn deleted the above addition and only retained addition of Rs. 1392364/- on peak balance basis. Therefore aggrieved by the order of the Ld. CIT appeal revenue is in appeal before us. 2. The first and second ground of appeal of the revenue is that the Ld. CIT (A) has reduced the addition of Rs. 8517740/- on account of purchases and ....
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....tions is worked out from the relevant cashbook of entity. He submitted that this is no reason not to make the separate addition with respect to the purchase of the goods. He therefore submitted that 1st appellate authority has erred in reducing the addition to the peak amount invested. 4. The Ld. authorized representative submitted that in identical situation in the circumstances as Ld. CIT appeal has mentioned at Para No. 7.12 of his order that identical addition has been deleted by the coordinate bench in case of one of the group entity. He further referred to the several decisions mentioned in his paper book at serial number 09 to 13 wherein on identical circumstances the addition has been deleted. It was further submitted that the is....
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....ased entered were also submitted before the assessing officer during the course of assessment proceedings. At page No. 44 of the paper book it is shown that the assessee has given a comparable instance of 4 parties stating their permanent account number along with the comparable gross profit ratio as well as the net profit ratio earned by them , which are less than what, is earned by the assessee. On all these details submitted by the assessee there is no examination made by the assessing officer but he has merely gone by the fact that assessee belongs to Thapar group and is engaged in providing accommodation entries. We have also perused the decision of the coordinate bench in case of New life Mission Discount Card Private Limited versus A....