TaxTMI 
TaxTMI 
2021 (11) TMI 877
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....unting to Rs. 9,70,000/- for fabrication of two LPG tankers was against invoices amounting to Rs. 4,21,290/- and Rs. 5,48,710/-, no income arose, hence, no addition was called for. 4.) Because the CIT(A) has erred in law and on facts in not discussing Additional Evidences submitted under Rule 46A of the Income Tax Rules, 1962, in the form of copy of accounts form the suppliers. 5.) Because while confirming the additions the CIT(A) did not consider the submissions filed by the appellant in response to the Remand Report submitted by the Assessing Officer. 6.) Because the Order appealed against is contrary to law, facts and principles of natural justice." 2. Ground nos. 1 to 3 are regarding addition made by the Assessing Officer of Rs. 14,10,000/- and Rs. 04,21,290/- on account of unexplained payment of margin money and excess payment for purchase of two LPG Tankers which was confirmed by the CIT(A) to the extent of Rs. 15,38,880/-. During the year under consideration, the assessee purchased two LPG Tankers by taking loan from Oriental Bank of Commerce, Johnstonganj, Allahabad. The assessee has claimed the total cost of purchase of two LPG Tankers at Rs. 50,50,000/- out of whic....
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....33(6) was used against the assessee without giving an opportunity to the assessee. The CIT(A) called for a remand report from the Assessing Officer after considering the additional evidence and contention of the assessee in the remand report, the Assessing Officer reiterated its stand and argued for the confirmation of the additions. The CIT(A) after considering the remand report confirmed the total addition of Rs. 15,38,880/- as against the two additions of Rs. 14,10,000/- and Rs. 4,21,290/- made by the Assessing Officer. 3. Before the Tribunal, the learned AR of the assessee has submitted that the assessee has submitted a proposal of Rs. 50,00,000/- to the bank through loan application dated 2nd June, 2014 alongwith the quotations from the prospective supplier for purchase of two LPG Tankers for a total cost of Rs. 64,10,000/-. The learned AR has further contended that as per the quotation of the suppliers, the estimated cost of two LPG Tankers was Rs. 64,10,000/- however, the total amount of Rs. 51,71,000/- was paid by the assessee as cost of two Tankers. He has referred to the bills/invoices issued by M/s. Bafna Motors (Mumbai) Private Limited, M/s. TATA International DLT Priv....
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....ssessee has claimed to have paid the total amount of Rs. 9,70,000/- for two LPG Tankers which is Rs. 4,21,290/- more than the total amount shown in the invoices dated 2nd June, 2014. The assessee then produced two more invoices of M/s. Spark Engineers of Rs. 2,10,645/- each total amounting to Rs. 4,21,290/- to make up the excess payment. He relied upon the orders of the authorities below. 4.1. As regards the addition on account of margin money, the assessee has not explained how the total cost of these two Tankers is reduced from 64,60,000/- to 50,50,000/-. He has referred to the assessment order and submitted that the assessee in the undertaking given to the bank at the time of taking the loan has stated that the margin money of Rs. 14,60,000/- will be paid by the assessee from her own source and the balance of Rs. 50,00,000/- was to be paid from the loan amount. The Assessing Officer has conducted the enquiry from the bank which has produced the relevant record showing that as per quotations produced by the assessee, the total cost of two Tankers was Rs. 64,60,000/-. Since the assessee has paid Rs. 50,000/- in cash therefore, the balance of Rs. 14,10,000/- was added by the Asses....
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....out various discrepancies in the show cause notice dated 17.11.2017 and the relevant details are as under:- "The invoices submitted to the bank of procuring loan are as 'under:- i. Bafna Motors for purchase of LPG tankers Rs. 18,83,763/- for each tanker and Rs. 37,67,526/- for two tankers. ii. TATA DLT for purchase of Tandem Axle Running Gear Rs. 4,82,478/- for each tanker and Rs. 9,64,956/- for two tankers. iii. Spark Engineers Pune to fabricate LPG Mobile Road tanker as per Drawing and mounting the same on Running Gear provided by you Rs. 6,90,000/- for each tanker and Rs. 13,80,000/- for two tankers. A total sum of Rs. 61,12,482/- was to be paid to the three parties as per the proposal sent to the bank. The Bank has shown the total amount shown in the proposal at Rs. 64.10 lakhs whereas in your letter dated 22.09.2017, you have mentioned that the total cost of proposal submitted to the bank is 64.60 lakhs which is contradictory statement in itself. When asked to explain about the payments made to the parties as per the bank statements you have produced bills of all the three parties which are as under:- As per bank statement the payments made to the three parti....