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2013 (2) TMI 151 - PUNJAB & HARYANA HIGH COURTAddition u/s 40(A)(3) - the appellant is said to have purchased wheat from Shri Sai Baba Rice Traders & the payment of Rs.30,80,746/- was made by assessee otherwise by account payee cheque - Held that:- Perusal of the documents produced by the appellant does not prove the payments as alleged. Certificate given by Shri Sai Baba Rice Traders in respect of receipts of six cheques from M/s Shri Ganesh Trading Co. However, the statement of account from the ledger of assessee shows that the account produced is of Ram Nath Ramesh Chand of whom the appellant is the proprietor. There is no endorsement in the said account that the cheques in the sum of Rs.30,80,746/- has been issued to Shri Sai Baba Rice Traders for and on behalf of the appellant or that the said cheques were ever issued to Shri Sai Baba Rice Traders. In view of the said fact, no substantial question of law arises for consideration - additions confirmed. Additions being hypothetical interest on the purchase advance - Held that:- Even if the agreement to sell was oral, the account books of the appellant should have contain an entry of payment of Rs.6 lacs for the purchase of petrol pump. Since, there is no such entry, the findings of fact recorded by the authorities under the Act cannot be said to be unjustified - additions confirmed. Addition of higher rate of interest - 18.5% paid by the appellant to his mother as against the market rate of 15% - Held that:- Tribunal has returned a finding that the AO has considered the rate of interest paid by the appellant as higher in comparison to prevalent market rate of interest. The transaction in question is not a genuine and bona fide transaction is again the finding of fact. No substantial question of law arises for consideration - appeal rejected.
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