AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (6) TMI 202
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.... of unsecured loans ignoring the findings of AO in assessment order and remand report. (3) Whether on the facts and in the circumstances of the case, ld.CIT(A) was justified in deleting the addition of Rs. 89,74.337/made on account of Chukara Khata ignoring the findings of AO in assessment order and remand report. (4) Whether on the facts and in the circumstances of the case, ld. CIT(A) was justified in deleting the addition of Rs. 4,22,283/made on account of various expenses ignoring the findings of AO in assessment order and remand report. (5) Whether on the facts and in the circumstances of the case, ld.CIT(A) was justified in deleting the addition of Rs. 84,183/- made on account of freight expenses ignoring the findings of AO in assessment order and remand report. (6) Whether on the facts and in the circumstances of the case, ld. CIT(A) was justified in admitting the additional evidences in violation of provisions of Rule 46A even when sufficient opportunity was given to assessee during assessment proceedings. 3. Brief facts of the case as culled out from the records are that the assessee is the proprietor of M/s. Amar Trading Company enga....
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....om M/s Sona Trading Company, Bangalore. All the transactions are through banking channel. The appellant recorded the sales made and payment received in the books of account. These are the regular business transaction which has been reflected in the books of account of the appellant. The advance received is not a loan from the above party. The confirmation received from the above party has been forwarded to the AO for his comments. The AO has not pointed out any defect in the confirmation filed. Therefore the addition made by the AO amounting to Rs. 18,44,404/_ is deleted. Therefore, the appeal on this ground is Allowed. 9. From perusal by the above finding of Ld. CIT(A) and also going through the paper book, we observe that assessee has a regular trading account of M/s Sona Trading Company to which regular sales are made and payments received through banking channel. The revenue authorities have not raised any question on the genuineness of the transactions. We, therefore, find no inconsistency in the finding of Ld. CIT(A) and the same is upheld. Ground no.1 of the revenue's appeal is dismissed. 10. Apropos to Ground No.2: wherein the revenue is aggrieved with the de....
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....serial no. 2 & 5 are old loans. The appellant received and repaid the loan through banking channel. In the remand report also the AO has not commented adversely. Therefore, the addition made by the AO amounting to Rs. 6,60,000/- iss Deleted. Therefore, the appeal on this ground is Allowed. 5.4 Ground No.4:- Through this ground of appeal the appellant has challenged the addition of Rs. 14,55,506/- on account of unsecured loan. The AO made the addition on the ground that in respect of the following persons, the loan confirmations were not tiled:- The appellant furnished the loans confirmation along with PAN No. and address in respect of the above persons. Most of the loans from the above parties except at the serial no. 5, 6 & 7 are old loans. The appellant received and repaid the loan through banking channel. In the remand report also the AO has not commented adversely. Therefore, the addition made by the AO amounting to Rs. 14,55,506/- is Deleted. Therefore, the appeal on this ground is Allowed. 11. From perusal of the above finding of Ld. CIT(A) and the available records, we observe that the assessee has filed confirmation letters with the na....
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....explained Chukara Khata observing as follows: 5.5 Ground No.5:- Through this ground of appeal the appellant has challenged the addition of Rs. 89, 74,337/- on account of chukara khata. The AO made the addition on the ground that the appellant was required to make the payment to the farmers on the same date of purchase. The appellant has not made the payment to the farmers on the date of purchase. The appellant is making the purchase from the Mandi. The appellant prepared the balance as on last day and there were outstanding to the fanners on the last day of working. The appellant furnished the name of the persons from whom the appellant has purchased the agriculture produce, date of purchase, name of the commodity, outstanding amount as on 31- 03-2014 and date of payment of above amount. The appellant purchased the agriculture produce from the auction yard of the mandi. The employee of the Mandi Board writes the name and addresses of the farmers and the rate at which the auction completed on the slip. The weighment is done by tulvati accepted agency of Mandi Board and he prepares the slip for number or bags, total weight, name of the buyers and commodity. The appellant pre....
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....purchased. The transactions are not directly between the assessee and the farmers but are through the Mandi and the employees of the Mandi maintain complete records of the transactions entered into between assessee and farmers. Generally the payments are to be made on the same date but it's strictly compliance is very hard to achieve. Ld. Counsel for the assessee has referred to various instances in the form of Newspaper cutting placed at page 18 of the paper book showing that payments to farmers remain outstanding on various occasions Even otherwise revenue authorities have not doubted the genuineness of the purchase and have not rejected the books of accounts. We, therefore, in the given facts and circumstances of the care, are of the considered view that there is no infirmity in the detailed finding of the Ld. CIT(A), and therefore, the addition made by the assessing officer of Rs. 89,74,337/- on account of Chukara Khata has been rightly deleted by the Ld. CIT(A). We, accordingly, dismiss revenue's ground no.3. 15. Apropos to ground No.4 & 5: through which the revenue has challenged the action of Ld. CIT(A) deleting the addition for disallowance of expenses at Rs. 4,22,283/- ....