TMI Blog2016 (8) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... s. However, the Tribunal speculated in favour of the assessee. The assessee can hardly be aggrieved by the speculation in his favour. No substantial question of law.- Decided against assessee Disallowance of interest under section 36(1)(iii) - amount advanced to the employees of the Appellant by terming the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 1,50,00,000/- for achieving the alleged turnover outside the books of accounts wherein 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 justified in upholding the addition of ₹ 18,26,036/- on account of excess cash and ₹ 1,96,992/- on account of excess stock found during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 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 ₹ 10 crores at the GP rate of 5.51% was worked out to be ₹ 55,13,865/-. 5. The investment required for achieving the turnover of about ₹ 10 crores was calculated by referring to the assessee s balance sheet as on 31.03.2007. The assessee s capital account excluding the profit earned during the year was ₹ 49,05,880/-. The amount of secured loans as on 31.03.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 perverse or irrational either. The Tribunal indeed speculated by reducing the undisclosed investment at ₹ 1.50 crores and the addition of ₹ 55.01 lacs to about ₹ 34.65 lacs. However, the Tribunal speculated in favour of the assessee. The assessee can hardly be aggrieved by the speculation in his favour. 8. The appeal as regards question Nos. 1 to 4 is dismissed as they do not raise a substantial question of law. 9. Question Nos. 5 and 6 also do not raise a substantial question of law. The assessee advanced amounts without interest to his sister concern and to the employees. It was f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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