2025 (11) TMI 1380

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....t year 2022-23, wherein learned CIT(Appeals) has allowed assessee's first appeal and deleted the addition made by the Assessing Officer. 2. Brief facts state that the assessee runs a proprietary business in the name of M/s. G.M.C. Enterprises, which deals in scrap trading of ferrous and non-ferrous metals. Assessee filed his return of income for the year under consideration, declaring total income at Rs. 31,42,150/-. The case was selected for compulsory scrutiny under CASS with the reason - "Low income from TCS receipts - Scrap". Statutory notices were issued and served upon the assessee. Assessee responded in part. Show cause notice dated 07.03.2024 was also issued to the assessee as per following description : "The total credi....

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....aw in appreciating the claim of the assessee that a short loan of Rs. 1,61,75,000/- credited in his bank account from Gvan Metal Co. during the year without examining the fact that no lender in the name of Gvan Metal Co. is mentioned under point no. 31a of the audit report of the assessee. Therefore, the CIT(A) has wrongly deleted the addition at Rs. 6,77,45,526/- on this basis. 2. That the CIT(A) has erred on facts and in law in appreciating the claim of the assessee that entire short loan of Rs. 1,61,75,000/- was repaid during the year without examining the fact that no payee in the name of Gvan Metal Co. is mentioned under point no. 31c of the audit report of the assessee. Therefore, the CIT(A) has wrongly deleted the addition o....

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....the extent of Rs. 1,65,25,255/- during the year under consideration? 8. Learned DR for the revenue has submitted that the assessee had failed to submit the reconciliation statement for the credits in the bank account and receipts as per the books of accounts before the Assessing Officer. Hence, the Assessing Officer has rightly added the unexplained credits in the income of the assessee. Ld. DR has submitted that the ld. CIT(Appeals) did not afford an opportunity to the department for verification of the additional evidence in respect of the details of GST on sales, VAT refund and reconciliation/bank statements for the verification and prayed to restore the matter back to learned Assessing Officer for the verification of the same and pas....

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....5,526/- vide submission dated 18.09.2024. For clarity on the issued the break-up of the reconciliation is reproduced as under: i) GST on sales Rs. 4,85,37,933/- ii) VAT Refund Rs. 62,692/- iii) Internal Bank Transactions Rs. 16,75,000/- iv) Excess amounts refunded by Trade Creditors Rs. 4,76,386/- v) Sweep Bank Interest Rs. 50,684/- vi) Short loan Rs. 1,61,75,000/- vii) Contra Entry of TDS Rs. 42,200/- viii) Contra entries, cheques returned Rs. 7,25,631/- Total credits other than sales Rs.6,77,45,526/- 6.2.1. In support of the above the appellant furnished the GST details, Vat Refund details, Ledgers of loan with corresponding Bank statements, and copy of Bank statement highligh....