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TMI Blog2016 (4) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the assessee. At this juncture, the Bench pointed out page No. 159 of the paper book where the assessee has provided the details of this amount of Rs. 15,23,787/- and as per said detail, the amount of fresh loan received during the present year is Rs. 35,14,887.63 and the addition was made by the Assessing Officer of a lesser amount of Rs. 15,23,787/- only. In reply, it was submitted that the addition was made by the Assessing Officer of the amount of difference between the closing balance of unsecured loan and the opening balance of unsecured loan and since various amounts were received during the present year and repaid during the present year to the same person, it does not come out as to the addition was made in respect of which loan. 5. Learned D. R. of the Revenue supported the orders of the authorities below. 6. We have considered the rival submissions. We find that as per the assessment order, it is noted by the Assessing Officer in Para 2 of the assessment order that the assessee has shown loans from promoters at Rs. 65,90,562/-, which was Rs. 50,66,775/- in the last year. It is further noted by the Assessing Officer that the assessee was asked to furnish details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against income already accounted for by the assessee of Rs. 1,87,983/- and therefore, the addition upheld by CIT(A) should also be deleted. 9. Learned D. R. of the Revenue supported the order of learned CIT(A). 10. We have considered the rival submissions. We find that as per the assessment order, the assessee did not furnish the details of FDR being the date of FDR and the rate of interest and therefore, the Assessing Officer estimated the income from FDR @10% of the closing balance in FDR with bank. In the assessment order, the Assessing Officer wrongly proceeded with the amount of FDR at Rs. 31.51 lac saying that this is the amount of FDR balance as on 31/03/2007 i.e. but this is the closing balance of the preceding year and at the end of the present year, the amount of FD balance is Rs. 21,51,446/- and not Rs. 31,51,446/-. Relief is already allowed by CIT(A) to this extent and he has allowed relief of Rs. 1 lac being 10% of Rs. 10 lac extra FDR considered by the Assessing Officer in the assessment order. Now on the actual amount of FDR of Rs. 21,51,446/-, the estimate by Assessing Officer stands at Rs. 2,15,000/- and since the assessee has already accounted for FDR interest a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not justified. 15. Learned D. R. of the Revenue supported the orders of the authorities below. 16. We have considered the rival submissions. We find that as per the details available on page No. 161 of the paper book, fresh security deposit of Rs. 5.52 lac was received during present year including Rs. 5 lac from Shiva Steel and Rs. 50,000/- from Madhyeshiya Traders and Rs. 2,000/- from Anil Kumar Mishra. Copy of account of Shiva Steel is available on pages 167-170 of the paper book. On Page No. 167 of the paper book is its security deposit account for the current year showing credit balance of Rs. 5 lac being the amount of security received in cash on 22/03/2007. On page No. 168 of the paper book is security deposit account of Shiva Steel for next financial year i.e. 2007-08 where opening cash balance is Rs. 5 lac and there is journal entry on 16/04/2007 as per which, the said credit balance is transferred to Shiva Steel customer account. On pages 169 to 170 is the copy of ledger account of Shiva Steel, Lucknow customers with opening debit balance of Rs. 1,25,939/- and there is no corresponding credit entry available in its customer account on account of transfer from Shiva S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - being other interest paid on CST/PF/ESI/UPTT etc. Regarding the interest on PNB CC account, it was submitted that the evidence is the bank statement of PNB CC account. He also submitted that the disallowance was made u/s 43B but the assessee has furnished evidence that the interest was already paid and in support of this, ledger account of interest on PNB CC account is available on page 96 to 99 of the paper book and ledger account of interest on Gateway Leasing Ltd. ICD is available on page No. 100 of the paper book. The ledger account of other interest accounts are available on pages 101 to 103 of the paper book, and that of discounting charges are available on pages 104 to 113 of the paper book, ledger account of interest on CST is on page No. 114 of the paper book, interest on PF on page No. 115, interest on UPTT on page 116 and other interest on page No. 117 and interest on development tax is available on page No. 118 of the paper book. He submitted that out of all these expenses claimed by the assessee, some discounting charges were unpaid but section 43B is not applicable for unpaid discounting charges. He also submitted that out of interest to others also, Rs. 1,18,588/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary, wages and Bonus". 10. Because the learned first appellate authority ought not to have confirmed addition of Rs. 2,00,00,000/- out of various heads of expenses on the plea of preventing any possible leakage in the accounts of the assessee." 22. It was submitted by Learned A. R. of the assessee that the copy of written submissions filed before CIT(A) on 25/03/2013 is available on pages 13 to 18 of the paper book. It is submitted that the same arguments of the assessee should be considered for the purpose of deciding these grounds. 23. Learned D. R. of the Revenue supported the orders of the authorities below. 24. We have considered the rival submissions. Regarding ground No. 8 i.e. disallowance of Rs. 18,33,669/- being 25% of the expenses on repair & maintenance of plant & machinery, building and others, we find that this disallowance was made by observing in Para 8 of the assessment order that regarding the expenses of repairs of Rs. 73,34,678/-, no details have been filed and during the year, manufacturing and sales have decreased but the expenses on repairs to plant & machinery, building and others have increased a lot and since the same remained unverifiable, 25% of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 lac on account of gratuity vide Para 5 of the assessment order. He has also submitted that the expenses under the head employees remuneration and benefits, salary, wages and bonus are inclusive of this amount and if it is excluded then the expenses under this head will be Rs. 368.86 lac only, which is less than the last year's expenses. Hence, no disallowance is called for. We find force in this contention of Learned A. R. of the assessee because we find that as per the audited accounts available on pages 19 to 40 of the paper book, the details of employees remuneration and benefits of the current years and preceding years are available on page 30 of the paper book and as per the same, in the present year, the amount claimed is Rs. 448.55 lac as against the claim of Rs. 439.38 lac in the preceding year. As per the Assessing Officer in the assessment order, the claim under this head was Rs. 609.08 lac but this is the explanation of the assessee before CIT(A) that this amount included the amount of provision of gratuity which has been separately disallowed by Assessing Officer as per Para 5 of the assessment order and after excluding this amount, the claim under this head is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed by CIT(A) is not justified. 29. Learned D. R. of the Revenue supported the order of learned CIT(A). 30. We have considered the rival submissions. We find that it is noted by CIT(A) on page No. 19 of his order that the Assessing Officer has contended in his remand report dated 16/05/2013 that the said extraordinary income of Rs. 49,30,942/- has been included by the assessee itself in the computation of total income. It is noted that the Assessing Officer has also mentioned that no satisfactory reason or evidence for excluding the extraordinary income of Rs. 49,30,942/- is furnished by the assessee. Before us also, it was not shown as to why this amount was included by the assessee in the computation of income filed along with the return of income and on what basis, it was excluded afterwards. Hence, on this issue, we find no reason to interfere with the order of CIT(A) because when an income is included by the assessee itself in the computation of income filed by the assessee along with the return of income, if the assessee pleads that such amount is not be included in the total income then supporting evidence has to be brought on record by the assessee in support of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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