2025 (5) TMI 2116

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.... of income for AY 2018-19 declaring total income of Rs. 99,27,760/-. The case of the assessee was selected for scrutiny. Notices u/s 143(2) and 142(1) of the act were issued. The assessee furnished details in response to the quarry made by the AO. The AO going over the details and explanations submitted by the assessee passed an assessment order u/s 143(3) determining total income at Rs. 1,49,36,6100/- by making two additions: i) interest on unsecured loan u/s 36(1)(iii) of Rs. 35,88,850/- and ii) disallowance of rent paid u/s 40a(2)(b) of Rs. 5,20,000/- 3. Aggrieved by the said order the assessee preferred an appeal before the Ld. CIT(A) wherein the addition u/s 36(1)(iii) of Rs. 35,88,850/- has been sustained but the addition of Rs. 5,....

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..... 4.80 crores. We have gone through the PB filed by the assessee and find that the balance sheet of the assessee goes to reveal that the outstanding unsecured loan on 31.03.2018 was Rs. 49,58,71,929/-. We further find that on perusal of comparison chart filed by the assessee with regard to the sundry debtors, it appears to us that there was an increase in sundry debtors come to Rs. 4,79,87,017/-. The relevant portion of the same is reproduced here in below:- 7. In this context, we have gone through the decision of Hon'ble Apex Court in the case of India Cement Ltd. vs. CIT reported in [1966] 60 ITR 52 (SC) and find that the Hon'ble Supreme Court has held that the loan obtained cannot be treated as an asset or debtor for enduring the bene....

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....(a) Share Capital 21881000.00 21881000.00 (b) Reserves and Surplus 2 221640239.62 216748289.41 (2) Share application money pending allotment 0.00 0.00 (3) Non-Current Liabilities (a) Long-term borrowings 495871929.00 251922094.00 (b) Deferred tax liabilities (Net) 0.00 0.00 (c) Other Long term liabilities 640818.25 448533.20 (d) Long term provisions 0.00 0.00 (4) Current Liabilities (a) Short-term borrowings 291010933.04 237059100.29 (b) Trade payables 64495695.30 204308319.65 (c) Other current liabilities 4858949.76 4191309.09 (d) Short-term provisions 3057070.00 8128234.00 Total 1103464634.97 945486879.64 IL.Assets (1) Non-current assets (a) Fixed assets (1) Tangible assets 10 ....

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.... 500000.00 2153884.92 1333773.42 155122.48 155122.48 12282.00 12282.00 10000.00 10000.00 18000.00 18000.00 877386.42 759966.42 3726675.82 2004357.32 14 Imentorica STOCK IN TRADE STOCK IN TRANSIT (As taken valued and certified by the management) 611802740.00 571650173.65 13930828.00 0.00 611802740.00 585581001.65 15 Trade Receivables SUNDRY DEBTORS (UNSECURED CONSIDERED GOOD) 355432493.70 307465476.39 ADVANCE TO SUPPLIERS 2295071.83 446632.62 357747565.61 307912109.01 16 Cash and cash equivalents HREC BANK 106233.61 599539.73 UBI BHUBANESHWAR 261548.44 194961.61 UBI GUWAHATI 564468.11 920693.89 UNION BANK OF INDIA 161040.00 498301.00 A....

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....TIA EXPENSES 0.00 17968.00 INCENTIVES 0.00 7000.00 CO'S CONTRIBUTION TO ESI 454452.00 191877.00 CO'S CONTRIBUTION TO PF 908926.00 479736.00 TOTAL 22137167:00 24 Elnancial costs INTEREST PAID 37085194.00 30753915.00 BANK INTEREST 25216817.00 24898148.00 SHL DISCOUNTING CHARGES 0.00 16770.15 TOTAL 62302011:00 55668833.15 25 Other Expenses ADVERTISEMENT 587939.00 359735.00 AUDITORS REMUNERATION (FOR STATUTORY AUDET) 133500.00 105000.00 BANK CHARGES & COMMISSION 1826778.24 668714.87 BROKERAGE & COMMISSION 1613030.62 1710729.00 CARATAGE INWARD 34454.70 257893.00 CASH DISCOUNT 553821.09 0.00 CONVEYANCE 573568.00 571870.00 DELIVERY CHARGES 6602223.05 5786063.77 DONATION 851....