TaxTMI 
TaxTMI 
2018 (12) TMI 824
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....est expenses. ii) Rs. 3,39,456/- being the amount of difference as per TDS certificate & as per a/c. by holding asundisclosed income. 2. The learned CIT.(Appeals) XVI, ought to have considered the written submissions made by the appellant before DCIT, Circle-3 and also before him vide our written submission dt. 08-02-14 with enclosures and also by calling records as well as ought to have considered the submission made from time to time by the appellant and ought not to have uphold the order of the DCITCircle-3, A'bad and ought to have allowed the claim of exps. Made by the appellant. 3. The learned CIT. (Appeals) XVI, ought to have considered the written submissions made by the appellant before DCIT Circle-3 from time to time and submission made before him vide our submission dt.08-02-2014 with its enclosures. 4. Your appellant respectfully submits that the disallowances madeby the D.C.I.T., Circle-3, be allowed in full while computingthe total income / loss of the appellant while passing theorder u/s.143(3). Your appellant craves for leave to add and or alter all or any grounds of appeal before final hearing of our appeal.'' 3. T....
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....he assessee by observing that the advances claimed to have been given to 15 parties for the purpose of the business were not classified as trade advances in the balance sheet. 5.3 There was no material/ goods supplied by the parties who have taken advance from the assessee either during the year under consideration or in any subsequent year. 5.4 There was no document filed by the assessee evidencing that the money borrowed for the purchase of machinery was utilizedfor the purpose of the business. 5.5 In view of the above the Ld. CIT(A) disregarded the contention of the assessee and confirmed the order of the AO. 6. Being aggrieved by the order of the Ld. CIT(A) assessee is in appeal before us. 7. The Ld. AR before us filed a paper book running from pages 1 to 107 and submitted that all the loans given to 15 parties are the trade advances. These advances have been adjusted during the year or in the subsequent year. There was also deducted the TDS under the relevant provisions of the Act on the expenses claimed against such advances. The Ld. AR in support of his claim drew our attention on the copies of the ledgers which are placed on pages 8 to 50 of the paper b....
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....ts and circumstances we are of the view once the Revenue has not disputed the expenses against such advances then the question of treating the advances as non-trade does not arise. 8.6 Thus, we are of the view that no disallowance of interest can be made in respect of the advances which have been adjusted by the assessee by way of claiming the expenses against such advances in the year under consideration or the subsequent year. 8.7 However we note that there were certain parties to whom the advances was given by the assessee and which were not adjusted against any expense till the end of the relevant financial year or in the subsequent year. These parties are as under: Parties name Amount 1) D K Engineers 3,23,720/- 2) Hardware tools & M/C syndica 2,35,000/- 3) M N shah- HUF 88,000/- 4) Amit Tube 14,30,397/- 5) Nirav shah 5,50000/- 6) Paresh M shah 10000/- 7) Pratik M shah (proprietor of 5,65,262/- Parshawnath enterprises) net Debit Amount after adjustment Of credit balance of parshavnath enterprises.( 11,16,929.49 - 5,65,262.84) 8.8 In respect to the above parties the Ld. AR for the assessee has not brought any evi....
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....l these accounting adjustments show that the amount of loan taken by the assessee from magma leasing company Ltd for the purchase of machinery was ultimately utilized for the purpose of the business. Therefore in our considered view, no such disallowance can be made in the year under consideration. 10.3 The learned DR has also not brought anything on record evidencing that the money borrowed for the purchase of the machinery was utilized for non-business purposes. Therefore we have no alternate except to reverse the finding of the lower authorities in the given facts and circumstances. Thus the ground of appeal of the assessee is partly allowed for the statistical purposes. 11. The 2nd issue raised by the assessee is that the Ld. CIT(A) erred in confirming the order of the AO by treating the amount of Rs. 3,39,456/- as undisclosed income of the assessee. 11.1 The assessee in the year under consideration has shown an income of Rs. 12,03,620/- received from the V Arks Engineers Pvt. Ltd. However, the TDS certificate issued by V Arks Engineers private Ltd shows total amount credited to the assessee is of Rs. 16,09,044/- only against which there was a deduction of the TDS a....
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....TA No.1804/AHD/2015 for A.Y 2007-08. The assessee has raised the following grounds of appeal. ''The order of the learned ACIT. Cir.3 levying penalty u/s.271(l)(c) of Rs. 5,07,665 and uphold by C.I.T.(A)-10,Ahmedabad is bad in law and on facts so far as (i) the A.C.I.T,, Cir-3 had not keep the penal proceedings initiated by him u/s. 274 r.w.s. 271. Despite of the fact that a request was made by the appellant to keep the penal proceedings pending till the date of finalisation of quantum appeal lying before honourable ITAT Ahmedabad vide his letter dt. 14-07-2014 ii) The CIT(A-10 has hot keep the proceedings pending as the quantum appea1 of appe11ant is pending before honourable ITAT "C" Bench Ahmedabad. (2) The learned ACIT Cir-3 and CIT(A)10 ought to have considered the fact that the working of tax evaded and or application of explanation-l of section 271(1)(c) is only applicable after thefina1isation of quantum of income of the appellant and which was not finalised by honourable ITAT "C" Bench Ahmedabad and ought to have keep the proceedings in abeyance as requested by the appellant vide his letter dated 14-07-2014 and ought not have uphold the o....