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2020 (10) TMI 39 - MADRAS HIGH COURTSuppression of income - Lower rates for cash sales as against 'sales to jewellers'- HELD THAT:- Tribunal took note of the statement given by one of the employees and the assessee and has extracted the relevant portion of the statement. Noting that the deponent did not make any allegation that they were selling bullions in cash at lower rates and it was done for suppression of income, the Tribunal took note of the assessee's stand that the trade information and data will not be shared with all employees, as they follow 'need to know principle' and only such information which was required to be shared within employees will be made known to the concerned employee. Tribunal noted that the soft copy of the books of accounts found at the time of search was not a parallel set of account but only regular accounts maintained by the assessee based on which it was filing their returns. With the above factual finding, the Tribunal concurred with the CIT(A) correctly .- Decided in favour of the assessee Disallowance of interest - AO disallowed the interest alleging diversion of interest free loans at 12% given to various persons - HELD THAT:- CIT(A) found that the assessee had substantial capital built over various years and was also having substantial interest free advances and there was nothing on record to show that any interest bearing funds were diverted for giving any interest free loans or for making any investments. The finding rendered by the CIT(A) was decided for its correctness and the Tribunal confirmed the same after taking note of the observations made by the CIT(A), who had analyzed the total investments and interest free advances given for the assessment years 2006-07 to 2012-13 as well as the total of interest free advances received by the assessee for all the assessment years and confirmed the finding.- Decided in favour of the assessee Income arising to the assessee on account of the credit and debit notes issued by M/s.MMTC Ltd. - HELD THAT:- Tribunal, in it's considered view rightly deferred the proceedings under the Act to be commenced after the conclusion of the Arbitral proceedings, considering the nature of dispute between the assessee and M/s.MMTC Ltd.,. We find that the order passed by the Tribunal meets the ends of justice and safeguards the interest of Revenue and no cause has arisen to invoke the powers under Section 150 of the Act.- Decided in favour of the assessee Unexplained credit - non filing of confirmation letter from Smt.Pista Bai called for under Section 142(1) - HELD THAT:- Tribunal also verified the facts and noted that the transaction amounts received from Smt.Pista Bai were repayment of earlier advances of ₹ 30,00,000/- given by the assessee, when the business was run as a Proprietorship concern and the latter transactions were reflected in the accounts of the Proprietorship concern. Thus it was held to be only a repayment of debt by a Debtor. Once the business was taken over by the assessee Company, any repayment of debt by a Debtor will not create a further credit, it will square off the debit. Therefore, the Tribunal found that there was no reason for interfering with the order passed by the CIT(A).- No substantial question of law.
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