TaxTMI 
TaxTMI 
2020 (4) TMI 465
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..... In grounds no.2, 3 and 4, the assessee has challenged the addition of Rs. 31,91,853, on account of un-substantiated closing credit balance of trade creditors. 4. Brief facts are, the assessee, a resident company, is engaged in the business of manufacturing and sale of various types of raw, semi-finished, moulded, C.I. and S.G. Iron Castings i.e., Cylinder Blocks, Automobile Spare & Parts, Engine Parts, etc. For the assessment year under dispute, the assessee filed its return of income on 27th September 2012, declaring total income of Rs. 2,97,72,364. During the assessment proceedings, the Assessing Officer on verifying the Balance Sheet of the assessee noticed that the assessee has shown outstanding sundry creditors of Rs. 10,49,44,885....
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....her documents. However, neither learned Commissioner (Appeals) was convinced with assessee's plea that proper opportunity of hearing was not granted by the Assessing Officer or with the additional evidences filed. Therefore, he observed that the additional evidences cannot be taken on record. Having held so, learned Commissioner (Appeals) was of the view that the disallowance of Rs. 90 lakh made by the Assessing Officer cannot be sustained as he has only doubted the outstanding sundry creditors of Rs. 39,91,853. Accordingly, he restricted the disallowance to Rs. 39,91,853. 6. Reiterating the stand taken before learned Commissioner (Appeals), the learned Authorised Representative submitted, in course of assessment proceedings the Assessin....
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....disputedly, in the course of hearing before learned Commissioner (Appeals), the assessee did produce certain additional evidences to prove the transaction with Advait Distributors Pvt. Ltd. From the materials placed in the paper book it is noticed that the additional evidences furnished before learned Commissioner (Appeals) included PAN details of Advait Distributors Pvt. Ltd., copy of confirmation obtained from the said party, copy of ledger account of concerned party in assessee's books, copy of assessee's account in the books of Advait Distributors Pvt. Ltd. However, learned Commissioner (Appeals) has declined to look into the aforesaid evidences filed by the assessee with a general statement that no fruitful purpose would be served b....
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....re, during the assessment proceedings the Assessing Officer noticed that in the year under consideration the assessee has earned exempt income by way of dividend amount to Rs. 98,585. Whereas, the assessee has not disallowed any expenditure attributable to such income. Therefore, the Assessing Officer called upon the assessee to explain as to why disallowance under section 14A r/w rule 8D should not be made. In reply, it was submitted by the assessee that since no expenditure was incurred for earning the exempt income, no disallowance under section 14A should be made. Not being satisfied with the explanation of the assessee, the Assessing Officer proceeded to compute the disallowance under rule 8D at Rs. 78,546, comprising of interest ex....