TaxTMI 
TaxTMI 
2021 (9) TMI 1171
X X X X Extracts X X X X
X X X X Extracts X X X X
....concurring with the findings of A.O., regarding framing of assessment u/s. 148 r.w.s. 144 of Income Tax Act, 1961 without appreciating the fact that the and erroneous service of notice by affixation and without appreciating the fact that the very notice u/s. 148 was illegal, arbitrary and perverse and against well settled law and thus deserve to be set aside in the interest of justice. 3. That without prejudice to above, the Ld. CIT(A) is not justified in upholding the addition made by the Ld. A.O., of Rs. 4,41,065/- u/s. 36(1)(iii) of the Income Tax Act, 1961 on sundry debtors which finding of the CIT(A) are illegal, arbitrary and perverse and against well settled law and thus deserve to be set aside in the interest of justice. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....laimed bardana loss of Rs. 2,82,444/- without furnishing any documentary evidence, it was also added to the income of the assessee. The A.O. passed the assessment order ex parte under section 144 of the Act on 16/03/2015 by making the aforesaid additions. 5. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and as regards to the addition made on account of interest u/s. 36(1)(iii) of the Act, submitted as under: "In the assessment proceeding before respected JCIT, Kurukshetra, this fact was barely and lengthily discussed and explained with all documents, copy of a/cs vice-versa of debtors, who were rice purchasers of the trade in the year of big-loss it is not possible in any circumstance to collect interest when....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nable to explain coherently the reason for non-charging of interest from debtors. Merely by stating that 'big losses in trade' was the reason for non-charging of interest is not a satisfactory explanation. There has to be a cognitive reason for the same. In my view, the disallowance has been rightly made and I confirm the same. This ground of appeal is dismissed. 6. Now the assessee is in appeal. 7. The Ld. Counsel for the Assessee reiterated the submissions made before the authorities below and it was further submitted that in such type of cases no interest was charged on the trading debtors. It was also submitted that the purchaser of the rice from the assessee were having the loss in this year so it was not possible to char....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oss in bardana. 11. The facts related to this issue in brief are that the A.O. made the addition of Rs. 2,82,442/- which was shown by the assessee as bardana loss. 12. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and submitted as under: "The addition of Bardana losses of Rs. 2,82,442/- is totally illegal assessed as a income as the bardana is packing material of the good of sales at the commodity price as rice Rs. 40/60 per kg and purchase price/coast comes high Rs. 80 per bag. Loss in the packing material in Bardana is compulsory and trade practice is also unavoidable. All the facts are thoroughly discussed in the assessment proceeding and all documentary proof/on the assessment file records. In....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Rate(Rs.) Date & Bill No. Rate(Rs.) 22.10.2008/025985 27.40/- 10.10.2008/163 6.08/- 5.11.2008/1036 10.19/- 17.10.2008/ 10.60/- 6.11.2008/1038 10.19/- 8.11.2008161 6.00/- 26.11.2008/1128 25.74/- 21.11.2008/173 6.00/- From the above it can be inferred that as to how a prudence business man will buy the things on the higher price and sold the same on the lesser price within the same period. Further, before the undersigned despite allowing the assessee an opportunity for explaining the said loss, he totally failed to submit any explanation to justify his loss on account of Bardana. Moreover, books of accounts as required have not been produced despite the service of letter throug....