TaxTMI 
TaxTMI 
2017 (11) TMI 387
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....ietary concern namely M/s. Reena Steel Trading in scrap. The case was selected for scrutiny. The A.O. passed the order under section 143(3) dated 16th February, 2015. The A.O. made addition to the income of assessee of Rs. 7,45,000/- as unsecured loan, Rs. 13,97,750/- towards bogus purchase and Rs. 2,02,466/- on account of difference in closing stock. The A.O. completed the assessment at a total income of Rs. 27,92,506/-. The assessee challenged all the additions before Ld. CIT(A). However, the appeal of assessee has been dismissed. 3. I have heard the Learned Representatives of both the parties and perused the material on record. All the issues are decided as under. ISSUE NO.1 - UNSECURED LOANS : 4. During the course of assessment....
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....st efforts to produce the creditors before A.O. However, none agreed to come to the Income Tax Department due to fear. 4.3. The Ld. CIT(A) considering the material on record noted that the examination of the bank accounts of the creditors shows that there have been cash deposits in all the accounts just before extending loan through cheques. None of the parties have been produced before the A.O. for examination. Therefore, assessee failed to prove genuine credit in the matter. The appeal was accordingly dismissed. 5. After considering the rival contentions, I do not find any merit in this ground of appeal of assessee. The Learned Counsel for the Assessee reiterated the submissions made before the authorities below and submitted that a....
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....f the Tribunal have been confirmed by Hon'ble Allahabad High Court in the case of Smt. Suman Gupta vs. CIT in ITA.No.680 of 2012 dated 07th August, 2012 by dismissing appeal of assessee. The Hon'ble Gujrat High Court in the case of Blessing Construction vs. ITO 32 taxmann.com 366 held that "where sizeable amounts were deposited in cash in account of depositors only before their withdrawal through cheques in favour of the assessee, addition was justified". In the present case, the return of income of the creditors would show that they have declared small income and paid meagre tax. In their bank accounts, there was meagre bank balance prior to giving loan to the assessee and cash have been deposited immediately before giving loan to the asse....
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....ecorded in the books of account. The party from which assessee purchased material mentioning in Kg but written MT while in MT he should point out 8.690 MT but they have written 8690 MT which is a mistake due to illiteracy of the party. The assessee purchased material of 8.690 MT or can say 8690 Kg. The A.O. however, did not accept the explanation of assessee and made the addition on account of bogus purchases of Rs. 13,97,750. The assessee submitted before Ld. CIT(A) that mistake is a clerical which should be clarified from the vouchers and invoices. An example is also given as to how the item is to be considered in Kg and MT. Assessee therefore, explained that there is no mistake in total of the purchases. The Ld. CIT(A) however, did not a....
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....IFFERENCE IN CLOSING STOCK : 12. The A.O. noted that assessee has furnished details of opening stock and closing stock and has shown closing stock of Rs. 88,87,866. But as per the trading account, closing stock was shown at Rs. 86,85,400. Difference of Rs. 2,02,466 was added to the income of assessee. The Ld. CIT(A) did not accept the explanation of assessee and also confirmed the addition and dismissed this ground of appeal. 13. After considering the rival contentions, I am of the view that addition is wholly unjustified. Learned Counsel for the Assessee pointed out page-30 of the paper book which is Trading and P & L A/c to show that sales have been declared in a sum of Rs. 88,87,866 and closing stock is shown at Rs. 86,85,400. PB-4....