Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 691 - ITAT MUMBAI

2015 (12) TMI 691 - ITAT MUMBAI - TMI - Addition u/s. 68 - Held that:- Different figures being claimed as the amount of cash loans, viz. at ₹ 3,55,330/- as per the memo of appeal before the ld. CIT(A); ₹ 4,59,500/- per the statement of cash loans received from 10.08.2008 to 05.01.2009 (adduced now); and at ₹ 3,85,430/-, per the summary of cash-book (adduced now). It has already been explained that the documents being relied upon cannot be said to form part of the record, being .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the matter. The A.O. has already confirmed per s. 159 order (supra) the figure adopted in assessment to be in terms of the cash-book produced before him during the assessment proceedings. The assessee's balance-sheet (as on 31.03.2009) (now produced), assuming the same as filed along with the return of income, itself shows the unsecured loans as well as the deposits from the patients to be at ₹ 15.96 lacs and ₹ 5.8 lacs (as on 31.3.2009) respectively. The addition u/s.68 is under the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t in its case could be made by the assessee. The amounts, it is stated, had been advanced in earlier years. In that case, there would definitely be some correspondence for/or follow-up by the assessee seeking reasons for or to expedite the delay in the purchase, which would substantiate its claims and, besides, also reveal the reason for the non-supply of goods. The purpose of advance to Sushila Hospital is also not spelled out. It is only where the advance is shown to be for the purpose of asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax and its deposit, the corresponding amount would stand to be allowed as deduction for that year, i.e., the year of deposit/payment - Decided against assessee.

Levy of interest u/s. 234B is mandatory and consequential and, accordingly, there is no merit in the assessee's case. - ITA No. 4004/Mum/2015 - Dated:- 20-11-2015 - Sanjay Arora, AM For the Appellant : None For the Respondent : Smt Bharati Singh ORDER Per Sanjay Arora, AM This is an Appeal by the Assessee directed against th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cash loans aggregating to ₹ 9,56,665/- during the relevant year in various sums ranging from ₹ 15,000/- to ₹ 19,500/-. On being called upon to explain, the same were stated to be from friends and relatives. However, the same were not supported by confirmations. The names and addresses of the creditors were also not furnished. The credits were under the circumstances treated as unexplained. No improvement in its case could be effected by the assessee in appeal. Though the assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hed. The addition u/s. 68 of the Act was, accordingly, confirmed, and against which the assessee is in further appeal. 3. The parties have been heard, and the material on record perused. The assessee's only case before the Tribunal was that the cash loans received were in fact at a much lower sum of ₹ 3,85,430/-. The papers submitted in support of the claim are not certified as true copies, being, in fact, not in the form of a paperbook. Further, a perusal of the same as well as that f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

i.e., containing documents before the authorities below nor certified for being true copies. In fact, all that the assessee, to substantiate its claim, was required to do was to produce the A.O.'s letter dated 20.12.2011 (to him), calling for the explanation for the credits (refer page 2 of the assessment order), as well as the assessee's reply thereto in-as-much as, the difference being substantiate, this would be the first objection that the assessee would have raised in the matter. T .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ances confirmed; the parameter of section 68 being clearly unsatisfied. I decide accordingly. 4. The second disallowance agitated in appeal is in respect of interest expenditure, claimed in the sum of ₹ 13,80,027/-, on proportionate basis, at ₹ 80,774/-. The reason for the disallowance is the investment by the assessee in Sushila Hospital (Rs.1.28 lacs) and by way of loans and advances (at ₹ 5.45 lacs), on which no income is generated, even as they are financed by borrowed fund .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ence for/or follow-up by the assessee seeking reasons for or to expedite the delay in the purchase, which would substantiate its claims and, besides, also reveal the reason for the non-supply of goods. The purpose of advance to Sushila Hospital is also not spelled out. It is only where the advance is shown to be for the purpose of assessee's business or profession, that interest attributable thereto could not be allowed. The assessee's case is wholly unevidenced. Under the circumstances, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r, so that no amount was payable as at the year-end and, therefore, section 40(a)(ia) shall not apply, relying on the decision in the case of Merilyn Shipping & Transports v. Addl. CIT [2012] 136 ITD 23 (Vish) (SB). 6. The parties have been heard, and the record perused. The default in the noncompliance of the TDS provision, i.e., in first deducting tax at source then depositing the tax, is admitted. Section 40(a)(i) only introduces a timing effect, so that on the deduction of tax and its de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

j), overruling Merilyn Shipping & Transports (supra). The matter stands also discussed at length by the tribunal, as in the case of Raviraj Relempaadu [2014] 29 ITR 387 (Mum.)(Trib.) and ITO vs. Pratibhuti Viniyog Ltd. (in ITA No. 1689/Mum/2011 dated 22.08.2014), also discussion and distinguishing the decision by the Hon'ble Allahabad High Court in the case of CIT vs. Vector Shipping Services [2013] 85 CCH 201 (All); the issue of 'paid' and 'payable' being not before the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version