TaxTMI 
TaxTMI 
2025 (12) TMI 734
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....rious details from time to time. 3. During the course of assessment proceedings the Assessing Officer noted that in the Profit and Loss Account the assessee has shown total sales to the tune of Rs. 39.28 crores. Other incomes have been shown at Rs. 38.61 lakh. Against these sales/receipts, the assessee has shown the cost of sales at Rs. 34.35 crores as well as other expenses to the extent of Rs. 3.79 crore and has shown book profit of Rs. 1.52 crore before payment of salary and interest to partners. During the course of assessment proceedings, the assessee was asked to furnish the party-wise details of purchases and other expenses. The Assessing Officer observed from the details furnished that the assessee has made local as well as high sea and import purchases. However, the details of the local purchases, which were to the extent of Rs. 6.48 crores during the year or even the names/addresses were not provided. In view of this vide notices dated 14-10-2019 and 07-11-2019 the assessee was further asked to furnish some details/submissions. The assessee in response to the same filed incomplete details. Since there was absence of complete details of the names of the parties from who....
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.... cannot be accepted a genuine. The only inference that can be drawn by the detail on records is that the assessee is unable to produce any evidences for such large expenses debited in its books of accounts and the assessee has shown these unverified expenses during the year and liabilities as on 31-03-2017 in respect of these parties to reduce its tax liability. 3.7 As per the questionnaire dated 12-06-2019, the assessee was asked to furnish a large number of details but no details were forthcoming. Details on many points as asked vide notice u/s 142(1) dated 12-06-2019, 14-10-2019 and 07-11-2019 were not filed. The above facts, coupled with the facts that the assessee had not produced its books of accounts/bills/vouchers for verification clearly lead to the conclusion that the assessee could not substantiate the cost of sales shown by the assessee as well as the expenses shown since not even the names/addresses of the parties could be produced. 3.8 Vide letter dated 15-11-2019, uploaded on 20-11-2019. the assessee stated that it had submitted a list of parties for expenses exceeding Rs. 1 lakh on 25-09-2019. However, none of the said details were submitted. This ....
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....07 4 Selling Expenses 13,38,937 5 Finance Cost 2,16,84,916 6 Depreciation 23,10,500 Total Rs. 38,14,22,866 The appellant submitted that he had furnished reply and explanation sought by the Assessing Officer during the assessment proceedings. The appellant submitted that the details of sundry creditors and expenses as required by the Assessing Officer were filed on 20.11.2019. I have gone through the submission of the appellant and also through the replies filed by him before the Assessing Officer. It has been mentioned by the appellant in the reply filed on 04.12.2019 that list of parties for expenses exceeding Rs. 1 lakh was submitted on 05.09.2019 but I don't find any details of expenses filed on 05.09.2019. Therefore, the appellant has had not filed the complete details as required by the appellant and in these circumstances the Assessing Officer was right making an ad-hoc disallowance of Rs. 50 lakh. Therefore, the ground of appeal is not tenable and is dismissed." 5. Aggrieved with such order of the Ld. CIT(A) / NFAC the assessee is in appeal before the Tribunal by raising the following grounds: 1. That the le....
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.... account and sample bills. Referring to page 65 of the paper book he drew the attention of the Bench to the purchase details. Referring to pages 67 and 68 of the paper book, he drew the attention of the Bench to the details of imports made by the assessee. Referring to page 273 of the paper book, he drew the attention of the Bench to the ledger account of Devay Mermer. Referring to page 342 of the paper book, he drew the attention of the Bench to the ledger account of Marmo Granite International. Referring to page 328 of the paper book he drew the attention of the Bench to the ledger account of IN MA SA SRL. The Ld. Counsel for the assessee referring to the ledger accounts of the above creditors and sample invoices submitted that they are completely tallied. 7. He submitted that the assessee vide reply dated 15.11.2019, copy of which is placed at pages 227 to 233 of the paper book, filed the requisite details such as details of sundry creditors exceeding Rs. 1 lakh during the year with names / full addresses / PAN as per annexure-1. Similarly, the assessee has also enclosed the list of parties for expenses exceeding Rs.1 lakh during the year with names, full addresses / PAN as p....
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....ered the various decisions cited before us. We find the Assessing Officer in the instant case made an adhoc disallowance of Rs.50 lakhs out of total claim of purchase / cost of sales / various expenses of the assessee on the ground that the assessee failed to submit the details whatsoever of the purchases as well as expenses and the assessee failed to produce the copies of bills / ledger/ details of foreign remittances and ledger extracts to discharge the onus cast on it to establish the veracity of its claim. We find the Ld. CIT(A) / NFAC upheld the action of the Assessing Officer, the reasons of which have already been reproduced in the preceding paragraphs. It is the submission of the Ld. Counsel for the assessee that since the full details were produced before the Assessing Officer in response to the various notices issued, therefore, without going through the details filed by the assessee and without pointing out any mistakes therein the Assessing Officer should not have made adhoc addition and the Ld. CIT(A) / NFAC should not have upheld the same. 11. We find some force in the above arguments of the Ld. Counsel for the assessee. A perusal of the paper book furnished by the....
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....in marble and other stones used in building construction. Details of Place of Business : Rented Premises 1 Kusumlata ashok Jain : A3/102, Kohinoor estate Mula Road. Kirkee, pune-411003 Rent : Rs 16000/- PM ( Office ) 2.Chandrasingh P Chauhan : S No. 585, Silvassa Bhilad Road. Naroli, Silvassa DS NH Rent : Rs 8000/- PM ( OpenPlot ) Ledger extracts enclosed 4 V The assessee is a manufacturer & trader in marble and other stones used in building construction associated business concerns u/s 40A(2)(b) of Income Tax Act 1961 . Nirmal Jain , Partner - Interest On Capital & remmunaration. 1. Arvind Jain , Partner - Interest On Capital & remmunaration Other related parties - Interest on unsecured loans ( List of unsecured loans Alongwith confirmations enclosed ) S.no Copy of ITR, financial statements, tax audit report, Form 3CB and VAT Audit report for the F.Y 2016-17. AY 2017-18 4 V Document 2 5 Details of Income tax assessments of 5 preceding years : Statement Enclosed. Copy of assessment orders enclosed . 5 ( 1) Details of sales ,Gp,Np for current year & 4 preceding years : Statement enclosed Partners details : 1) Nirmal shantilal Jain Share : 75%....