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2016 (8) TMI 373 - PUNJAB AND HARYANA HIGH COURT

2016 (8) TMI 373 - PUNJAB AND HARYANA HIGH COURT - TMI - Addition on account of capital investment - Held that:- Whether these amounts formed part of ₹ 2.45 crores or not is a question of fact. The assessee has not adduced any evidence to establish the same. The manner in which the Assessing Officer has came to the figure of ₹ 2.45 crores cannot be held to be perverse or irrational. His refusal to deduct the amounts as claimed by the assessee from this amount cannot be said to be per .....

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said advancement of money as not for business purposes? - Held that:- The assessee advanced amounts without interest to his sister concern and to the employees. It was found that there were no business transactions with the sister concern. Commercial expediency was not established. As far as the employees are concerned, a sum of ₹ 10 lacs is alleged to have been advanced to him. Only a credit entry in his account was found. The amount was advanced for the purpose of constructing a house. .....

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DENT : Ms. Urvashi Dugga, Advocate S.J.VAZIFDAR, CHIEF JUSTICE This is an appeal against the order of the Income Tax Appellate Tribunal dismissing the appellant/assessee s appeal against the order of the Commissioner of Income Tax (Appeals) which in turn dismissed the appellant s appeal against the order of the Assessing Officer. The matter pertains to the assessment year 2007-08. 2. The assessee contends that the following substantial questions of law arise in this appeal:- 1) Whether in the pr .....

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the specific details of investment for achieving the turnover is provided itemwise? 3) Whether in the present facts and circumstances of the case the order passed by the Ld. ITAT is perverse in partly holding the addition for capital investment to the tune of ₹ 1,50,00,000/- for achieving the alleged turnover outside the books of accounts wherein the addition of capital investment was based on the sources of investment rather than application of investment? 4) Whether the Ld. ITAT was just .....

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. ITAT is right in upholding the disallowance of interest under section 36(1)(iii) of the Act on the amount invested in share application money of the sister concern on the basis that the said investment could have been done from the proprietary concern of the Appellant, without examining the basic conditions for disallowance under section 36(1)(iii) of the Act? 3. The appellant filed a return of income of about ₹ 2.07 crores. The case was selected for scrutiny. On 16.03.2007, a survey was .....

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490/- which were discovered during the course of survey. The Assessing Officer took the figure of unaccounted sales amounting to ₹ 10 crores as a base to calculate the unaccounted profits and unexplained investment. The trading results of the assessee as contained in the profit and loss account and balance sheet were utilized. 4. The assessee had for the assessment year in question shown a GP rate of 5.51%. Accordingly, the unaccounted income earned from unrecorded cash sale of about ͅ .....

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7; 2,45,02,300/-. The total turnover for that year in the trading account was ₹ 13,27,91,312/-. The total turnover thus required an investment of about ₹ 2.45 crores. Proportionately to carry on a business having a turnover of about ₹ 10 crores required an investment of about ₹ 1.85 crores. Accordingly, the Assessing Officer computed the undisclosed income on unaccounted sales worth ₹ 10 crores as ₹ 2.45 crores. 6. The assessee, however, contended that various .....

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