TaxTMI 
TaxTMI 
2020 (2) TMI 922
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.... was engaged in the business of trading in fabric items. For the assessment year 2012- 13 it had filed its return of income on 06/02/2013 declaring an income of Rs. 15,47,16/-. Learned Assessing Officer, however, completed the assessment under section 143(3) of the Income Tax Act, 1961 (for short "the Act") by order dated 27/3/2015 at a Rs. 1,62,39,060/-after making addition on three counts, namely, Rs. 1,43,48,448/-on account of m/S Mahaveer Forging P Ltd holding it to be bogus creditor because such an entity has no physical existence and not to be found in the given address and the computer generated bills in this case were untrustworthy, Rs. 2,83,988/-on account of disallowance of personal expenses and Rs. 59,000/-on account of disallowa....
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....ve no relevancy to the issues raised by the learned Assessing Officer; and that in view of the reasons given by the learned Assessing Officer for making the additions it was for the assessee to establish the existence of Mrs Mahavir Forging private limited and the genuineness of the transaction, without which the case of the assessee cannot be accepted basing on logic and augments. Insofar as the disallowance of the expenses are concerned, Ld. CIT(A) recorded that all these expenses were made in cash and on self-made vouchers and the assessee was unable to explain as to why should the expenses be considered fully made for the business purpose. Ld. CIT(A), however, accepted the contention of the assessee in respect of the legal/professional ....
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....e assessee is not justified and the disallowance being certain percentage of expenses carried out on ad hoc basis and without any substance or material is the result of non- application of mind and it is not justified. 6. However, when the matter is called, neither the assessee nor any authorised representative entered appearance. It could be seen from the record that the notice sent to the address given in form No. 36 is returned with the endorsement of the postal servant that the addressee left. If the assessee is available in such address, such notice should have been served on the assessee. If for any reason, the assessee is not available there, it is for the assessee to make arrangements for service of such notice by furnishing the ....
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.... of the learned Assessing Officer for not believing the version of the assessee in respect of this creditor, and it relates it thus,- a) learned Assessing Officer of the creditor informed the learned Assessing Officer of the assessee that during the scrutiny of M/s Mahavir Forging Private Limited, no outstanding amount was shown against the assessee's name; b) the inspector of the learned Assessing Officer, after visiting the address given by the assessee, reported that there was no such company found at the given address and no one in the vicinity was aware of it; c) assessee was asked to produce the party and the assessee submitted that It is not in a position to produce such party; and d) the letterhea....
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....ed by auditor or Director of the company, leading to the inference that the assessee was misusing name of some assessee to show bogus corridor in its books of accounts. 11. There is no proper explanation from the assessee in respect of these reasons recorded by the learned Assessing Officer to draw the inference that the transaction is a bogus one. In the absence of any material touching on the aspect, we are of the considered opinion that the Ld. CIT(A) is justified in confirming the addition. There are no reasons warranting interference with the same. 12. Insofar as the 2ndaddition on account of the disallowance of expenses is concerned, the impugned order speaks that the assessee was issued a number of notices, but there was no com....