TaxTMI 
TaxTMI 
2025 (12) TMI 275
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....issue is against the order of ld. CIT(A) deleting the addition partly equal to 50% of the total disallowance of Rs. 25,76,473/- in respect of "other expenses and interest expenses" without any basis that too without any evidences from the assessee. 04. The facts in brief are that the assessee filed the return of income on 31.10.2015, declaring total loss of Rs. 3,77,85,008/-. The case of the assessee was selected for scrutiny and the statutory notices along with questionnaire were issued and duly replied by the assessee. During the course of assessment proceedings, the ld. AO noted that the case was heard with the authorized representative of the assessee. The ld. AO during the course of assessment proceedings upon perusal of the evidenc....
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....IT(A) confirmed the disallowance equal to 50% of the total expenses thereby deleting the addition to the extent of Rs. 12,88,286/- and sustaining the addition to an equal extent. 06. After hearing the rival contentions and perusing the materials available on record, we find that the ld. CIT(A) noted that these expenses were incurred by the assessee under various heads such as electricity charges, legal expenses, printing and stationery, travelling, telephone and interest etc. which are normally incurred for the purpose of business .However, the ld. CIT(A) noted that in absence of any documentary evidences, whether these expenses were wholly and exclusively incurred for the purpose of business could not be ascertained. Therefore, restrict....
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....ed from Wesman Thermal Engineering Process Pvt. Ltd. was a trade advance received from the Wesman Thermal Engineering Process Pvt. Ltd. for carrying out conversion works in the ordinary course of business. The ld. CIT(A) noted that advance was received against the sales bills raised by the appellant and thus, the said amount was received in the ordinary course of business and the transactions were explained satisfactorily. Accordingly, the ld. CIT(A) deleted the addition. 010. After hearing the rival contentions and perusing the materials available on record, we note that the assessee has not raised any loan from Westman Thermal Engineering Process Pvt. ltd. as observed by the ld. AO and ld. CIT(A) has correctly observed that amount rece....
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....jurisdictional Tribunal in the case of Narendra Nath Paul vs. ITO (ITA No.2284/Kol/2014), wherein it was held as under: copy enclosed at pages 179-181 of the P/B. I have considered the rival submissions and also perused the relevant material available on record. It is observed that the advances in question were stated to be received by the assessee from his dealers and two of such dealers had also appeared before the Assessing Officer and confirmed of having given such advances to the assessee. Moreover, the said advances were adjusted against the sale subsequently made by the assessee to the concerned M.R. Dealers and such sale was duly accounted for by the assessee in his books of account regularly maintained. It appears....
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.... to the total income of the assessee under section 68 treating the same as unexplained. As regards the advance of Rs. 1,20,000/- claimed to be received by the assessee on 30.03.2009, 1, however, find that the assessee has failed to explain the same in terms of section 68 and the addition made by the Assessing Officer and confirmed by the Id. CIT(Appeals) to this extent is liable to be sustained. 1, therefore, modify the impugned order of the Id. CIT(Appeals) and sustain the addition of Rs. 11.15.131/- made by the Assessing Officer under section 68 to the extent of Rs. 1,20,000/-" 012. Therefore, considering the facts of the assessee's case in the light of the aforesaid decisions, we are inclined to uphold that the ld. CIT(A) on this issu....