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2015 (10) TMI 1897 - ITAT DELHI

2015 (10) TMI 1897 - ITAT DELHI - TMI - Addition on unsecured loans - CIT(A) deleted the addition admitting additional evidence - Held that:- AO had vide order sheet entry dt. 13.12.2010 asked the assessee for details and passed the order of assessment on 24.12.2010. Thus we are of the considered opinion that the First Appellate Authority has rightly admitted the application of the assessee under Rule 46A as in our view the assess was prevented from sufficient cause in filing the evidence before .....

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n favour of assessee.

Disallowance of "Processing fee" - CIT(A) deleted the addition - Held that:- First Appellate Authority has given a categorical finding that there was an error committed by the bank. The HDFC bank had wrongly debited processing fee to the account of M/s Research Co. Book Centre, which is a sister concern of the assessee, instead of the assessee’s bank account. This mistake was latter realised and the processing fee in question which was due and paid to HDFC bank b .....

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e of loan made in the ordinary course of business, does not fall within the purview of S.2(22)(e) of the Act. Further the assessee is not a registered share holder of M/s Arihant Literary Works Pvt.Ltd. or M/s Researchco Book & Periodicals Pvt. Ltd. and that the assessee is also not a benefincial owner of the shares. Under the circumstances, the decision of the First Appellate Authority does not call for any interference - Decided in favour of assessee. - I.T.A. No. 4501/DEL/2012 - Dated:- 7-10- .....

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nce. 2. The assessee is a Partnership Firm, carrying on the business of whole sale trading of education research books. The assessee filed its return for the A.Y. under consideration on 27.0.2008 declaring a total income of ₹ 1,23,68,870/-. The case was processed u/s 143(1) and later on selected for scrutiny. Notice u/s 143(2) dt. 4.8.2009 and 29.9.2009 was issued and served upon the assessee. In response to the same, the Ld.Counsel for the assessee attended the assessment proceedings from .....

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tter in appeal. The First Appellate Authority granted relief. 4. Aggrieved the Revenue filed this appeal before us on the following grounds. 1. "On the fact and in the circumstances of the case, the Ld CIT (A) has erred in admitting additional evidence under Rule 46A despite the reasons outlined in the Remand Report wherefrom it is clear that none of the conditions of Rule 46A are attracted in the case of the assessee." 2. "Without prejudice, the Ld CIT (A) erred in deleting the a .....

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ither the assessment proceedings or appellate proceedings and without prejudice, the contentions of the assessee regarding source have not been proved by any evidence by the assessee even in additional evidence." 3. "Without prejudice the Ld.CIT(A) erred in deleting the addition of "Processing fee" ₹ 740916/- made to being expenditure of a different entity which the CIT (A) has deleted stating that the contentions of the assessee and evidences filed relevant to this cla .....

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and it has been proved in the Remand Report that the assessee's contentions made before CIT {A} are meretricious and thus CIT{A}'s order is perverse. 5. "Without prejudice the Ld.CIT(A) has erred in not appreciating the contents of the Remand Report dated 4.05.2012 wherein it is clearly brought out that the additional evidences are not admissible under Rule 46 A and it is also clearly brought out that the additions have been correctly made on merits. 6. The appellant craves leave t .....

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right in admitting additional evidence under Rule 46A. The A.O. has strongly objected to the admission of additional evidence. 7.1. The Ld.Sr.D.R. vehemently contended that the First Appellate Authority was wrong in admitting additional evidence despite objections of the Assessing Officer. It was argued that the assessee was not prevented by sufficient cause from filing the evidence before the A.O. during the assessment proceedings. 7.2. The Ld.Counsel for the assessee submitted that the return .....

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that the AO in the meanwhile completed the assessment. 8. We find that the AO had vide order sheet entry dt. 13.12.2010 asked the assessee for details and passed the order of assessment on 24.12.2010. Thus we are of the considered opinion that the First Appellate Authority has rightly admitted the application of the assessee under Rule 46A as in our view the assess was prevented from sufficient cause in filing the evidence before the A.O. during the assessment proceedings. This decision of the .....

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the account of M/s Research Co. Book Centre, which is a sister concern of the assessee, instead of the assessee s bank account. This mistake was latter realised and the processing fee in question which was due and paid to HDFC bank by the assessee, was claimed as revenue expenditure. The assessee had submittied the following documents in support of its claim. (a) copy of bank account of M/s Researchco Book Centre. (b) Copy of the ledger account of the assessee in the books of M/s Researchco Book .....

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pany s business, is the same as the business of M/s Arihant Literary Works Pvt.Ltd. and M/s Researchco Book & Periodicals Pvt.Ltd. and that an advance of loan made in the ordinary course of business, does not fall within the purview of S.2(22)(e) of the Act. Further he held that the assessee is not a registered share holder of M/s Arihant Literary Works Pvt.Ltd. or M/s Researchco Book & Periodicals Pvt. Ltd. and that the assessee is also not a benefincial owner of the shares. Under the c .....

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mar Jain Rs.11,20,000 e. NR Book Syndicate Rs.76,50,000 f. Time and Space Haulers Rs.15,00,000 g. Arihanta Liberary Works P.Ltd. ₹ 1,25,00,000 h. Researchco Books and Periodicals P.Ltd. Rs.2,00,000 10.4. The assessee has filed details containing the respective ledger accounts from each of the parties. Confirmations were filed from all the parties. Copies of the income tax returns of these creditors, bank statements and various other details have also been filed by the assessee. The A.O. ha .....

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bers and copy of return of income were also filed. The assessee received ₹ 4,12,40,000/- from the said party and this amount along with the opening balance was returned during the year. HJ Book Agency declared income of ₹ 16,64,162/-. The assessee filed confirmation letters. The detailed submissions made by the assessee could not be controverted by the A.O. 10.7. In the case of International Periodicals and Suppliers, the income tax returns and confirmation letters were filed and thi .....

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