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2015 (11) TMI 545 - PUNJAB & HARYANA HIGH COURTAdvances for purchase of raw material from two concerns being trade creditors as interest free loan - whether advances were made for commercial expediency? - Held that:- The Assessing Officer, CIT(A) and the Tribunal had concurrently concluded that the advance to M/s Chirag Spinning Mills amounting to ₹ 15 lacs appearing as opening balance had remained outstanding at the end of the year. The assessee had failed to show that the advance was made for purchase of yarn or for any other business transaction. Similarly, in the case of Dina Nath & Sons, there was opening balance of ₹ 2,69,659/- whereas against another purchase of ₹ 2,29,890/-, the assessee had made payment of ₹ 2,27,590/- retaining outstanding balance of ₹ 2,67,359/-. It was also held not to be for business purposes as the assessee had failed to explain why the purchase made during the year was not adjusted out of the said amount. In the light of the concurrent findings of fact recorded by the Assessing Officer, CIT(A) and the Tribunal, the assessee cannot claim any benefit by urging that no addition under similar circumstances was made by the then Assessing Officer for the assessment year 2005-06, as each year is independent and such addition depends upon facts and circumstances existing at the relevant time. - Decided against assessee.
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