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ACIT 14 (1) , Mumbai Versus M/s Jalan Synthetics C/o. D.C. Jain & Co. And Vice-Versa

2017 (9) TMI 800 - ITAT MUMBAI

Addition on non-genuine creditors - Held that:- During the first appellate proceeding, the assessee furnished written submission on 23.04.2014. The ld. CIT(A) after considering the submission concluded that the creditors namely Chennur Textile, S. Henil & Co. and Ishtiyak Ahmed, the assessee was unable to prove the genuineness about the creditors. The assessee has proved genuineness with respect of Santhil Kumar Textile KPM against whom a liability of ₹ 27322/- was shown. The ld. CIT(A) co .....

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4 Lakhs (except expenditure of ₹ 25,000/- by cheque) has been shown in cash. Since the assessee has to failed to substantiate and provide the details before the AO as well as before the ld. CIT(A). The ld. CIT(A) however, restricted the disallowance to ₹ 8,00,000/-. Before us, the assessee failed to substantiate his claim as to why the addition be deleted. As the assessee has neither come forward nor substantiate his claim. Thus, we do not find any illegality or infirmity in the orde .....

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to the extent of deleting the addition u/s 68 of the Act and deleting the estimate G.P. @ 6% are restored to the file of AO. The AO is directed to pass the order afresh in accordance with law - ITA No. 4822/Mum/2014 And ITA No. 5620/Mum/2014 - Dated:- 24-7-2017 - SHRI RAJENDRA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER For The Assessee : None For The Revenue : Ms Anju Garodia (DR) Order Under Section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. These cross appeal u .....

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fficer (AO) while passing the assessment order besides the other addition and disallowance made the addition of ₹ 86,136/- on account of nongenuine creditors, whose credit were more than three years on 31.03.2011, addition of ₹ 10,00,000/- on account of cash expenses. Addition of ₹ 2,30,85,000/- on account of cash credit u/s 68 of the Act being addition to partner s capital by way of cash and further made the addition of ₹ 2,73,48,477/- on the basis of Gross Profit ratio .....

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as challenged the deletion of addition on account of cash credit of ₹ 2,30,85,000/- u/s 68 of the Act and deleting the addition on account of Gross Profit ratio of ₹ 2,73,48,477/-. The assessee is also aggrieved by partial sustaining the addition on account of non-genuine creditor as well as cash expenses. 3. Both the appeal were listed today i.e. on 24.07.2017. None appeared on behalf of assessee despite waiting for sufficient time. No application for adjournment is filed on behalf .....

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to sustaining the addition on account of sundry creditors and Ground No.2 relates to addition on account of cash expenses. It was argued that assessee has shown the creditors from 01.01.2000 or prior thereto. |The assessee has not shown the genuineness of creditors nor furnished the ledger account of subsequent years. With regard to the partial sustaining of addition on account of cash expenses, it was argued that the assessee was showing the huge expenses in cash. The entire salary expenditure .....

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evenue and gone through the orders of authorities below and the material placed before us. During the first appellate proceeding, the assessee furnished written submission on 23.04.2014. The ld. CIT(A) after considering the submission concluded that the creditors namely Chennur Textile, S. Henil & Co. and Ishtiyak Ahmed, the assessee was unable to prove the genuineness about the creditors. The assessee has proved genuineness with respect of Santhil Kumar Textile KPM against whom a liability .....

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tiate his claim even before the ld. CIT(A). The ld. CIT(A) observed that the salary expenditure of ₹ 264.44 Lakhs (except expenditure of ₹ 25,000/- by cheque) has been shown in cash. Since the assessee has to failed to substantiate and provide the details before the AO as well as before the ld. CIT(A). The ld. CIT(A) however, restricted the disallowance to ₹ 8,00,000/-. Before us, the assessee failed to substantiate his claim as to why the addition be deleted. As the assessee h .....

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ng opportunity to AO. (ii) Whether ld. CIT(A) erred in deleting the addition of ₹ 27348477/- on account of estimate of G.P. @ 6%. (iii) Whether ld. CIT(A) erred in deleting the addition u/s 68 of the Act of ₹ 23085000/-. 8. The ld. DR for the Revenue argued that the ld. CIT(A) during the appellate stage accepted the additional evidence without adhering the procedure to allow the additional evidence without giving the opportunity to the AO. No opportunity was given to the AO to verify .....

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n on the basis of G.P. without any cogent reason. For deleting the addition u/s 68 of the Act, it was argued that addition was deleted without giving opportunity to the AO. 9. We have considered the submission of ld. DR for the Revenue and perused the material available on record. The assessee filed written submission dated 23.04.2014. Besides the written submission, the assessee furnished the copies of opening stock as on 01.04.2010 and closing stock as on 31.03.2011, wherein the assessee furni .....

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