TaxTMI 
TaxTMI 
2015 (10) TMI 2656
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....nfirming the following additions. (i) By relying upon Explanation 3 appended to Section 147 of the Act even without affording any opportunity to the appellant regarding the applicability of this Explanation.3 appended to Section 147, confirmed other additions which is quite illegal, unjustified in the light of settled law through plethora of judgements of Hon'ble Delhi, Bombay, Rajasthan and other Courts. Therefore, all the additions confirmed may kindly be deleted on this ground also. (ii) That, the ld. CIT(A) quite erroneously confirmed the following additions in the business of M/s. Kailadevi Trading Com. Which may kindly be deleted. (a) Trading addition of Rs. 29,646/- (b)Disallowance out of sundry expenses Rs. 6,219/- (c) out of salary expenses Rs. 36,000/- (iii) Addition of Rs. 3,75,748/-(including Intt. Rs. 44,480/-) on account of Sundry Creditors (treating cash credits), which are in fact old balance as well outstanding on account of purchases made from them. Further addition of Rs. 44,480/- on account of interest amounts to double addition. Therefore, all the additions being illegal, unjustified, unwarranted and may kindly be deleted. (3.) That the ld. CIT(....
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....e form as slate which does not come under the purview of Section 80IB of the Act. Therefore, the AO after recording the reasons about the notice u/s 148 of the Act dated 9-03- 2007 which was replied by the assessee vide letter dated 16-03-2007 and requested to treat the original return filed on 31-03-2003 in response to notice u/s 148 of the Act. Thereafter the AO scrutinized the case of the assessee u/s 143(2) of the Act. The AO gave various notices to the assessee but the response of the assessee was very poor. Therefore, the AO decided assessee's case u 144 of the Act. The AO further observed that from financial year 2001-02 relevant to assessment year 2002-03, the assessee was claiming deduction u/s 80IB of the Act which was at Rs. 1,62,695/-. The AO found that the assessee has not complied with the conditions prescribed u/s 80IB of the Act. The assessee was not manufacturing the goods as per Section 80IB of the Act. The AO again reiterated the manufacturing process of slate in his assessment order and held that the assessee is not entitled to deduction u/s 80IB of the Act. The AO relied on following case laws:- (i) Lucky Minmat (P) Ltd. vs. CIT (2000) 245 ITR 830 (SC) ....
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....sion. It is only clarificatory in nature. The ld. AR of the assessee relied on the following decisions. (i) CIT vs. Mohd Juned Dadani, 355 ITR 172 (Guj.) (ii) S.Sundaram Pillai vs. V.R. Pattabiraman, AIR 1985 P 585 (iii) CIT vs. Jet Airways (I) Ltd., 331 ITR 236 (Bom.) (iv) Ranbaxy Laboratories Ltd. vs. CIT 336 ITR 136 (Del.) (v) ACIT vs. Major Deepak Mehta, 344 ITR 641 (Chhatisgarh) (v) CIT vs. Shri Ram Singh, 306itr 343 (Raj.) (vi) CIT vs. Atlas Cycle Industries, 180 ITR 319 (P&H) 2.5 At the outset, the ld. DR supported the order of the AO. 2.6 We have heard the rival contentions and perused the materials available on record. The assessee raised the technical ground which can be raised at the level of ITAT as held by various Hon'ble High Court including Hon'ble Supreme Court. The assessee referred to various case laws as under: (j) CIT vs. Mohd Juned Dadani, 355 ITR 172 (Guj.) (ii) S.Sundaram Pillai vs. V.R. Pattabiraman, AIR 1985 SC 582 (Para 28) (iii) CIT vs. Jet Airways (I) Ltd., 331 ITR 236 (Bom.) In the case of Ranbaxy Laboratory (supra), the Hon'ble High Court held that addition is not made by the AO on the ground of re-opening of assessme....
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....ccount of M/s. Kaila Devi Trading Company under the head Salary Expenses, Dalali (Commission Agent), Transportation. Labour payment and shop expenses. The AO gave reasonable opportunity of being heard on this issue to the assessee but the assessee did not produce relevant vouchers before the AO. Therefore, he disallowed 20% out of total expenses of Rs. 31,593/- i.e. 63,19/- out of these expenses which was confirmed by the ld. CIT(A) by observing that no details were furnished before the AO alongwith evidence. In these circumstances, he confirmed the addition, 3.6 Similar arguments were made as made for other issues. In case of addition not confirmed by the ld. CIT(A) on the basis of case was reopened, the explanation 3 of Section 147 cannot be applied. The AO disallowed out of salary payment of Rs. 36,000/- on the ground that the assessee had debited salary expenses of Rs. 1.44 lacs in M/s. Ankur Industries. The assessee could not submit the details of the salary and services rendered by him for the business purposes. On repeated opportunities, the assessee could not advance any evidence for debiting the expenses under the head Salary. Therefore, he disallowed 25% out of salary ex....
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....rs of Rs. 3,75,748/- would be the income of the assessee. The assessee had not submitted any evidence including confirmation against query raised by the AO. Therefore, he made the addition of Rs. 3,75,748/-. 4.3 Being aggrieved by the order of the AO, the assessee carried the matter before the ld. CIT(A) who had confirmed the addition by observing that there is no reason as to why details were not produced before the during assessment proceedings even though sufficient opportunity was provided. Moreover, even during remand proceedings, the assessee did not furnish the books of account of earlier years, thereby opening balance in the name of various persons. The earlier year case has not been scrutinized by the AO. He further held that in such a situation the claim of the assessee regarding this credit balance mainly on the basis of statements prepared by him is not acceptable. 4.4 Now the assessee is before us. The ld. AR of the assessee reiterated the arguments as made before the ld. CIT(A) that these are old balances and these are trade creditors and not creditors. The purchases were made through regular bills from the registered dealers. There was a credit on account of intere....