TaxTMI 
TaxTMI 
2021 (1) TMI 850
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....n account of unsecured loan obtained from one Smt. Sharda Singh, by holding the same as bogus. 2. BECAUSE looking to the material and information available on record, Id. "CIT(A)" should have deleted the addition of Rs. 5,45,000/- on this ground alone that the loan was not received by the "appellant" during the year under appeal but the same was brought forward in the book? of account as opening balance in the year under appeal. 3. BECAUSE while making/upholding the addition of Rs. 5,45,000/- the authorities below have failed to appreciate the documentary evidences furnished by the "appellant" in the assessment / appellate proceedings. 4. BECAUSE while making/sustaining addition of Rs. 5,45,000/- the authorities b....
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....penses. The Assessing Officer has also issued notice u/s. 133(6) to various persons from whom unsecured loan were claimed. From the replies, it was found that most of the persons are return filer except one Smt. Sharda Singh who is household lady and claimed to have given a sum of Rs. 5,45,000/-. The Assessing Officer accepted the unsecured loan in respect of the other persons except the amount of Rs. 5,45,000/- shown from Smt. Sharda Singh. The Assessing Officer held that the loan creditor has no source of income and therefore, the creditworthiness of the creditor is not genuine. Accordingly, the Assessing Officer made the addition of the said amount of Rs. 5,45,000/- as bogus sundry creditor. The assessee challenged the action of the Asse....
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....ere given by the Assessing Officer. The Assessing Officer has recorded this fact in the assessment order that a number of opportunities were given to the assessee to explain the sundry creditors shown in the balance sheet but the assessee has not explained. Thus, the explanation of the assessee that this is an opening balance brought forward from the preceding year requires verification and examination. He has relied upon the orders of the authorities below. 5. I have considered the rival submissions as well as material available on record. The case of the assessee was selected for limited scrutiny to examine the sundry creditors and the Assessing Officer has called upon the assessee to furnish the details and explanation. The Assessing ....
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....e to verify this fact from the record whether this amount was only an opening balance and brought forward from the preceding year and then decide the issue afresh. 6. Ground No.6 is regarding disallowances of expenses confirmed by the CIT(A) to the extent of 5% as against 25% made by the Assessing Officer. The Assessing Officer has made a disallowance of 25% of various expenses on the ground that the assessee has failed to furnish any satisfactory explanation for the downfall of the GP and NP during the year under consideration as well as supporting evidence of the expenses. The assessee challenged the action of the Assessing Officer before the ld. CIT(A) who has restricted the disallowance to 5% as against 25%. 7. Before the Tribunal....
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....64/-in the year under consideration/ The assessee was provided a number of opportunities to substantiate the GP as well as NP as well as the income shown in the ITR and to explain the downfall if any, but he failed to furnish any satisfactory explanation for the same. On examination of the bills/vouchers in respect of expenses under different heads it is noticed that the expenses under the following heads were not found fully vouched. i) Shop & office rent Rs. 2,88,000/- ii) Office & shop expenses Rs. 94,603/- iii) Staff welfare expenses Rs. 1,91,660/- iv) Vehicle running & maintenance Rs. 61,480/- v) Travelling & conveyance expenses Rs. 32,279/- Total Rs. 6,68,022/- Ther....