TaxTMI 
TaxTMI 
2017 (12) TMI 735
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....ng addition of Rs. 100000/- in respect of loan taken for Sh. Premjeet Singh u/s 68 of I.T. Act. 3. That the assessee the right to add or amend any grounds of appeal if so required." 3. Vide Ground No. 1, the grievance of the assessee relates to the sustenance of adhoc addition of Rs. 1,00,000/- on account of unverified expenses. 4. Facts related to this issue in brief are that the assessee derived income from business of wholesale trading of electronic items, invertors and batteries etc. and filed the return of income on 22.09.2012 declaring an income of Rs. 13,87,660/-. Later on, the case was selected for scrutiny. During the course of assessment proceedings, the AO noticed that the net profit rate declared by the assessee w....
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....ns made before the authorities below and further submitted that all the major expenses incurred during the course of regular business, were through bills/vouchers. Therefore, adhoc disallowance made by the AO was not justified. 8. In his rival submissions the ld. DR supported the orders of the authorities below. 9. I have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it appears that the disallowance had been made by the AO for the reasons that most of the expenses were paid in cash which were treated as unverified expenses. However, the AO did not point out any specific defects in the books of account, at the same time, the assessee also did not fur....
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....dited Trading Profit & Loss Account (4) Copy of Balance Sheet (5) Copy of fixed assets schedule (6) Copy of Audit Report (7) Copy of reply filed before AO on 11/11/14 (8) Copy of confirmation of Sh. Prem Jeet Singh as filed on 11/11/14 (9) copy of reply filed on 08/03/15 (10)copy of assessee reply letter 16/03/15 (11) copy of reply filed on 19/03/15 (12) copy of Bank statement of Sh. Prem Jeet Singh filed on 19/03/15 for verification of loan entry of Rs. 100000/- on 26/09/11 (13) copy of application U/s 154 of I. Tax Act dt 04/04/15" 13. It was further submitted that the assessee received the loan by account payee cheque on 26.09.2011 and furnished ....
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....Kanpur Steel Co. Ltd. Vs CIT (1957) 32 ITR 56 (All.) • Ali Huesin Vs STO (1988) 68 STC 319 (Ori) • Ashok Electro Diamonds Vs Jt. CTO (1971) 28 STC 21 (Mad.) • EMC Works Pvt. Ltd. Vs ITO (1963) 49 ITR 650 (All.) • Mahboob Singh Subhash Chand Arhati Vs CST (1988) STC 229 • Munnalal Murlidhar Vs CIT (1971) 79 ITR 540 (All.) • KS Seth Gopikisan Agarwal Vs AC of ST (1971) Tax LR 355 (MP) • Pravin Colour Co. Vs ITO (1977) Taxation 48(6)- 155 (Bom-Trib.) • Nathu Ram Prem Chnad Vs CIT (1963) 49 ITR 561 (All) • CIT Vs Orissa Corporation (P) Ltd. (1986) 159 ITR 78 (SC) • Add. CIT Vs Hanuman Agarwal (1985) 151 ITR 150 (Pat)....
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.... her remand report that appellant neither furnished copy of ITR nor the copy of the bank account of the creditor to prove the creditworthiness of, the creditor. The copy of the bank account of Shri Premjeet Singh (the creditor), furnished during appellate proceedings shows that the creditor had given loan to appellant on 26.09.2011. On the same day Rs. 1,00,000/- cash has been deposited in the said account. Thus, in absence of details of income tax returns of the creditor and above mentioned facts regarding bank account, it is held that the creditworthiness of creditor has not been substantiated by the appellant. The appellant's arguments that transaction has been made through bank, does not prove that the creditor had creditworthiness.....