TaxTMI 
TaxTMI 
2023 (6) TMI 916
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....n deleting the addition of Rs. 9,49,682/- made by the AO u/s 40A(3) where the assessee during the assessment proceedings had failed to furnish the documentary evidence like bills or mode of payment. The assessee did not furnish the bank account details relating to the direct expenses made on the purchase of construction material. Further, it is not clear from the order of the Ld. CIT(A), whether all the bills/vouchers of expenses claimed were seen and verified. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has failed to note the total impact on the revenue as the assessee was having two separate books of accounts for two separate businesses. The Ld. CIT(A) without giving justified reasons deleted the addition....
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....Since, the order of the ld. CIT(A) is on sound rationale, we decline to interfere with the order of the ld. CIT(A). Addition of Rs. 18,12,451/-: 5. The AO held that, "6. In JCS construction's balance sheet proprietor opening capital 1st April 2014 was (-19,57,702/-) again the proprietor withdrew Rs. 1,70,369/-. On 31st march 2015 proprietor capital was Rs. (18,88,255.35). In A.Y. 2015-16 Sh. Subhash Jain also bought 1 property worth Rs. 1.40 crore despite claiming loss in construction business. Interest expenses of Rs. 16,94,906/- and bank charge Rs. 117545 therefore, is being disallowed as under this circumstances business nexus of interest expenses can never exist. [Addition - Rs. 18,12,451/-]" 6. The ld. CI....
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.... to interfere with the order of the ld. CIT(A). Bogus Purchases, Sundry Creditor: 10. The AO held as under: "Jain Chappal Store [Observed with Balance sheet, P&L Account of lain Chappal Store alone). From the assessment proceedings it has been found that in assessee's balance sheet assessee has shown sundry creditors worth Rs. 3.21 Crore. During the proceeding assessee was asked to produce confirmation from the parties along with their PAN and address. He complied to the same and produced confirmation from the sundry creditors. In the given addresses notice u/s 133(6) was sent. To the surprise of this office no response from the sundry creditors was received apart from Welcome Footware. Letters to Columb....
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....rom below mention sundry creditors genuine. 11. So purchase being disallowed in A.Y. 2015-16:- Party Name Name Klick India Rs. 35,54,589/- VB Resin Rs. 30,28,715/- Galaxy Footwear Rs. 21,38,790/- Manocha Polymer Rs. 71,05,440/- Oswal Industries Rs. 5,77,440/- Hallelu CLM footwear LLP Rs. 4,73,847/- Total amount Rs. 1,68,78,821/- 12. These Purchases of Rs. 1,68,78,821/- is being held as bogus and being added to the total income of the assessee." [Addition of Rs. 1,68,78,821/-] 11. The ld. CIT(A) deleted the additions holding that All payments that have been made by cheque or by RTGS. The payments to these very parties have been made even in the subsequent year against pu....