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2014 (2) TMI 934 - AT - Income TaxDisallowance of loss - Held that:- The assessee failed to submit details and evidences of expenses incurred by it - Also the Auditor put a remark that during excise search accounting and stock records were seized and audit was done in the absence of these records and documents - No verification was made even by the auditor, therefore appellant cannot claim that accounts are audited - Loss has been claimed but in support of such claim, no evidence is furnished - The assessee has not taken any step to take the certified copies from the Central Excise Department of the records seized - No panchnama of the records seized is placed on record, therefore in the absence of the material evidence, the authorities below were justified in rejecting the claim of the assessee - Decided against assessee. Unaccounted production and unrecorded sale - Held that:- Relying upon the decision in Motorol Technologies Ltd.v s. ITO [2014 (2) TMI 253 - ITAT AHMEDABAD] - The assessee failed to furnish the sales bill along with other basic records for verification as called by the AO - The AO has made additions solely on the basis of the penalty order passed by the Commissioner of Central Excise, Vadodara-II penalty order F.No.V.Ch.27(15)9/0A/AC/Prev./03 dated 29/10/2004 - Director of the assessee-company has agreed that goods have been removed from the premises without making entries in Central Excise Records and without paying the duty involved. No material is placed on record by the Revenue that any independent enquiry was made by the AO to find out whether such details of sales were not recorded in the regular books of account by summoning the record from the central excise authorities - The decision in aforesaid case followed to make addition @ 12.5% margin on unaccouted sale - Partly allowed in favour of assessee. Unexplained unsecured loan - Held that:- The appellant submitted accounts confirmations from Parikh Enterprise, Alpana Gandhi, Motorol Enterprise, Nirmala S.Gandhi, Motorol Speciality Oils Ltd, Manhatton Fingrowth Ltd. and Flexi Pack India Ltd - Confirmation received from all these seven parties bear the complete address and PAN - Except the case of Motorol Enterprise, the money was received by cheque - Relying upon the decision in Commissioner of Income-Tax, Orissa Versus Orissa Corporation Pvt. Limited [1986 (3) TMI 3 - SUPREME Court] - By furnishing confirmation with Pan, primary onus is discharged by the appellant - Onus thereafter shifts to the Assessing Officer to make further investigation and prove the credit non-genuine - Since primary onus is discharged by the appellant by submitting confirmation with PAN, credit cannot be treated as unexplained on non-submission of additional information – Decided against Revenue.
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