2025 (2) TMI 1824

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.... 24.12.2019 by the Assessing Officer, ITO, Ward-4(1)(3), Aligarh (hereinafter referred to as "ld. AO"). 2. The assessee has raised the following grounds of appeal before us:- Grounds of Appeal "1. Because the Ld. CIT(Appeal) has erred both on facts and in law in confirming the addition of Rs. 3,80,27,810/- made by the Assessing Officer u/s 40A(3) of the I.T. Act treating the payment made towards purchase of Indian Liquor and Bear to be in contravention of provisions of section 40A(3) of the L.T. Act. 2. Because the purchases made, the disallowance of which has been made u/s 40A(3) of the LT Act are fully verifiable and the identity of the seller is also verifiable and not in doubt and the payment made is under avoida....

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....ared on behalf of the assessee despite issuance of notice. Hence we proceed to dispose of this appeal after hearing the ld DR and based on materials available on record. 4. The Ground Nos. 1 to 4 raised by the assessee are challenging the disallowance of expenses made u/s 40A(3) of the Act. 5. We have heard the ld DR and perused the materials available on record. The assessee is an individual deriving income from liquor business. The return of income for the Assessment Year 2017-18 was electronically filed by the assessee on 7-11-2017 declaring total income of Rs 10,52,500/-. Despite issuance of several notices by the Learned AO, there was no response by the assessee before the Learned AO. The Learned AO observed that assessee has deb....

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.... in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee in his own interest, if he so desires, may furnish the relevant details in support of his contentions and to the satisfaction of the learned AO as to why the provisions of Section 40A(3) of the Act would not be applicable in the facts of the case. With these directions, the Ground Nos. 1 to 4 raised by the assessee are allowed for statistical purposes. 7. The Ground Nos. 5 & 6 raised by the assessee are challenging the confirmation of addition made u/s 68 of the Act in respect of introduction of Rs 3,46110/- to the capital account of the assessee during the year. 8. We have heard the rival submissions and perused....