TaxTMI 
TaxTMI 
2020 (6) TMI 202
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....nt 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 engaged in the business of trading in garlic and other products. Return of income declaring ....
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....ed 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 deletion of addition of unexplained/unsecured loans/cash credit of Rs. 32,40,040/-, Rs. 6,60,000/- and Rs. 14,56,506/-, we ....
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.... 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 name, address and PAN No. of all the creditors. Most of the loan accounts were squared off during the year, all the transactions were carried out through proper banking channel. All the transactions have also passed through the eyes of the auditor....
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....quired 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 prepares the purchase vouchers and bills on the basis or of two slips presented by the farmers to the appellant. The name and addresses mentioned in the purchased bill is on the basis of the two slips given by the employees of the Mandi to the farmers. The appe....
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....t'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/- being 20% of the expenses out of salary wages and Hamali expenses, disallowance of Rs. 84,183/- being 20% to freight expenses, we observe that Ld. Assessing Officer made disallowance of 20% of the expenses booked in the head of salary wages, Hammali and freight. Ld. CIT(A) has deleted the ....