Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 1171 - ITAT PUNEAddition towards unrecorded turnover - transaction of buy / sale in Paddy Basmati through National Spot Exhange Ltd. (NSEL) - HELD THAT:- As seen that Sauda Summary Report of Anand Rathi Commodities Ltd. showed two sets of transactions of Paddy Buy and Paddy Sell on 19-03-2013 and 11-03-2013, which were not recorded in the books of account for the year under consideration. The assessee kept raising a claim before the AO as well as the DRP that these transactions were recorded in the subsequent year. However, the assessee failed to substantiate his contention. Neither any material could be placed before the AO/DRP to demonstrate the booking of profit from such transactions in the immediately succeeding year, nor the position has improved any further before the Tribunal. In view of the admitted facts that the transactions did take place, and profit from them was neither recorded in the year under consideration nor the next year, we hold that the AO was justified in making the addition. The ground is, therefore, dismissed. Unrecorded transactions - transactions of Gold - HELD THAT:- We have also gone through the ledger of transactions of Anand Rathi Commodities Ltd. with the assessee, whose copy has been placed at page 25 onwards of the paper book, showing Buy Sauda date as 01-02-2013 and the actual transactions date of sale and purchase, namely, 01-03-2013 and 04-02-2013. In fact, there was only one set of transactions of GOLD purchase and sale, but the AO inadvertently additionally took the dates of Contract-cum-bills of purchase and sale as separate and distinct transactions. The addition so made by the AO is, thus, directed to be deleted. Disallowance of expenses - AO held that since the business was transacted only through Anand Rathi Commodities Ltd. and hence, the assessee was not required to incur any further expenditure in relation thereto, disallowed 80% of the expenses by allowing deduction only at 20%, against which the assessee has approached the Tribunal - HELD THAT:- As seen as an admitted position that the assessee did carry on the business in the year under consideration. Even though Anand Rathi Commodities Ltd was acting on behalf of the assessee, still the assessee also was required to incur usual necessary expenses to carry on his business. The expenses claimed are in the nature of day-to-day expenses, such as, Accountant salary, Driver Salary, Car expenses, Travelling and Depreciation etc. We are of the considered opinion that it would be just and fair if the disallowance is restricted to 20% towards personal element in expenses and unverified expenses. The assessee gets the relief accordingly. Transaction in Paddy Basmati - A.Y. 2014-15 - HELD THAT:- Though the assessee made the payment for the purchase of Paddy but could not take the delivery as a sum of Rs. 1.25 crore is still due from NSEL as per the above statement. On one hand, the assessee did not receive the delivery despite making payment for the purchase price, on the other, the AO computed profit from the presumed sale. We fail to appreciate that when the goods were not received in the first instance, where is the question of presuming the corresponding sale and then working out the profit therefrom. We, therefore, order to delete the addition.
|