2021 (1) TMI 236

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..... 5,41,426/- on account of burning losses during the process of manufacture of ingots. 3. That on the facts and circumstances of the case, the ld. CIT(A) has erred in confirming the addition of Rs. 3,50,000/- on account of loan from Smt. Bimla Devi alleging an accommodation entry whereas:- a. the loan from Smt. Bimla Devi has been received through NEFT through proper banking channel. b. that Smt. Bimla Devi is an income tax assessee. c. the addition has been made u/s. 115BBA and the provisions of said section are not applicable. 4. That on the facts and circumstances of the case, the Ld. CIT(A) has erred in confirming the addition of Rs. 10,00,000/- made by the Assessing Officer out of cartage outward for alleged inflated exp....

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....Tribunal. 3. At the time of hearing, with regard to addition of Rs. 5,41,426/- on account of disallowance of burning loss is concerned, Ld. Counsel for the assessee stated that during the year the burning loss in their plant was to the extent of 5.81% which is accurate and as per consumption and production of the finished goods and they purchased mainly turning boring scrap from the factories which has high burning loss in comparisons to other materials and burning loss depends upon the material used by manufacturers and if they use more quantity of sponges iron it will increases. It was also submitted that there is no standard % of burning loss in furnace it only depends furnace to furnace and only one kind of scrap cannot be used, they u....

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....r settled law, the addition made by the AO was on estimate basis, which is not sustainable, hence, the same is deleted as such. 4. As regards addition of Rs. 3,50,000/- on account of disallowance of unsecured loan raised from Bimla Devi is concerned, Ld counsel for the assessee submitted that assessee has taken unsecured loan from Bimla Devi by account payee cheque. The loan was taken in routine course of business. Smt. Bimla Devi is the relative of the directors of the company. She is regular income tax assessee and filing her income tax return. It was further submitted that Cash and Bank statement of Bimla Devi for the year 2013-14 alongwith its ITR, computation of income and balance sheet was filed before the authorities below, but coul....

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....ted by the biliti. Copy of all the bilties as a proof of payment was enclosed before the authorities below. Merely because of comparison with last year the AO has disallowed the carriage outward expenses. All the expenses are properly supported by the evidence of payment. There was a expenditure debited in the profit & Loss account Vehicle running & maintenance account which has been decreased from Rs. 2453172 to Rs. 548165. Despite that AO did not consider the decrease in the related expenses the expenses of carriage outward is directly related with the expenses vehicle upkeep and maintenance. It was further submitted that if the assessee clubbed together both the expenses there will a sharp decrease in the expenditure. So the base of disa....