TaxTMI 
TaxTMI 
2022 (1) TMI 1086
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....accounts were not produced and thereafter there was no appearance on behalf of the assessee. Ld. Assessing Officer proceeded to complete the assessment on the basis of return of income and annexures and documents attached thereto and written submission filed including the tax audit report. Ld. Assessing Officer examined the details of unsecured loans and in absence of necessary details to explain the unsecured loans he made the addition for unsecured loan of Rs. 81 lacs received during the year of which some amount was repaid during the year and the remaining was paid in subsequent years. Ld. Assessing Officer also made the addition for unsecured loan of Rs. 1,18,66,871/- u/s 68 of the Act for the loan received during the year from existing loan creditors. Ld. Assessing Officer also disallowed expense of Rs. 33,47,709/- claimed in the profit and loss account for want of verification. Disallowance also made u/s 40(a)(ia) of the Act, towards Motor, Bhada Expenses of Rs. 4,77,446/-. Addition also made towards purchase of scrap of at Rs. 9,39,798/- for non-furnishing of necessary details. Ld. Assessing Officer also made addition u/s 68 of the Act for the sale consideration received at ....
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....the relevant documents to explain the capital gains? 7.The appellant craves leave to add to, deduct from or otherwise amend the above grounds of appeal. 5. Ld. DR vehemently argued supported the finding of Ld. Assessing Officer. 6. Per contra Ld. Counsel for the assessee heavily relied on the finding of Ld. CIT(A) referred to various documents filed before the lower authorities which are placed in the paper book dated 21st May 2019 containing 148 pages and argued referring to the written submission placed on record. 7. We have heard rival contentions and perused the records placed before us and carefully gone through the finding of Ld. CIT(A) and the documents placed in the paper book. 8. Apropos to the first ground raised by the revenue relating to addition of gross profit of Rs. 33,44,709/-( wrongly mentioned by the revenue at Rs. 35,44,709/- in the grounds of appeal) made by the Ld. Assessing Officer for adopting the gross profit figure of Rs. 33,44,709/- as income and not allowing the claim of expenses made in the profit and loss account. This addition has deleted by the Ld. CIT(A) observing as follows:- Ground No 04 This ground of appeal is with regard to treating the ....
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.... IT, Act 1961, addition of Rs. 2,71,500/- as capital gains and addition of Rs. 9,39,798/- on account of purchase of scrap. I have carefully gone through the assessment order as well as submission of the appellant is this regard. 5.1 The appellant has stated that as far as addition of Rs. 8100000 was concerned, Rs. 4050000 were squared up loans during the year for which copy of account and even confirmation letter was also submitted in appeal proceedings. Further, the appellant has also submitted that the AO had neither examined nor commented on this issue in his remand report. As regards the balance addition of Rs. 4050000 was concerned, it has been claimed that the confirmations were duly submitted by the appellant. The appellant has submitted in his submission that the entire amount of Rs. 4050000 was repaid by the appellant in subsequent year i.e. A. Y.- 2006-07 and the confirmation of the said amounts were also submited. The appellant has thus argued that with regard to addition made at Rs. 8100000 the appellant had discharged its onus as stated above to prove the same but the AO did not comment on the same in his remand report. 5.2 As regards protective addition concerned,....
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....ition of Rs. 9,39,798/- for the disallowance of purchase iron scrap, we find that the addition was deleted by ld. CIT(A) holding it to be an addition made on ad hoc basis without correlating to the specific expenditure. We find that the Ld. Assessing Officer made the disallowance for want of verification of purchase. The assessee placed these details before the ld. CIT(A) who after going through the same and also in view of the details appearing in the audited financial statement deleted the disallowance of purchase of Iron Scrap of Rs. 9,39,798/-. Before us Ld. DR failed to controvert the finding of Ld. CIT(A) which therefore, in our view needs no interference. Accordingly ground no.4 raised by the revenue stands dismissed. 11. Apropos to ground no.5 relating to disallowance made by the Ld. Assessing Officer u/s 40a(ia) of the Act for non-deduction of tax at source and the Motor Bhada Expenses, we find that Ld. Assessing Officer was supplied with the relevant details of the Motor Bhada Expenses claimed in the profit and loss account. Before the Ld. CIT(A) it was stated that none of the payment exceeded the limit provided u/s 194C of the Act i.e. Rs. 20,000/- per transaction and R....