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M/s Shree Uma Engineering Versus The Income Tax Officer Ward, 21 (3) (2) , Mumbai

2017 (9) TMI 1102 - ITAT MUMBAI

Addition on account of unconfirmed credit balance - Held that:- In the remand report the AO confirmed that the assessee vide its reply dated 30.12.2011 contended that the corresponding journal entry was passed in the books of account of the assessee on 01.04.2009 by debiting M/s Anil Agency and crediting M/s Shree Uma Electricals. The ld CIT(A) concluded that the journal entry was passed on 01.04.2009 in the books of the assessee debiting M/s Anil Agency and crediting M/s Uma Electricals cannot .....

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wed. - Addition of unconfirmed loan - Held that:- We have seen that in the remand report the AO submitted that the difference was rightly added as the documents were not on record during the assessment proceedings. From the contents of the remand report it is clear that the evidence related with journal entry in the books of account of M/s Uma Electricals was filed only at the stage of remand report. The only objection of the AO was that the journal entry in the books of account of M/s Uma E .....

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CIT-A holding that unless the vehicle is registered the assessee cannot use it - Held that:- Considering the facts that no evidence with regards to put to use the vehicle was brought on record before the lower authorities, hence, we do not find any illegality or infirmity in the finding of ld CIT(A) qua this ground of appeal. In the result this ground of appeal is dismissed. - Disallowance of depreciation on factory shed - assessee has not substantiated with documentary evidence that additi .....

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sessment year under consideration. Thus, this ground of appeal is allowed. - ITA NO.2053/Mum/2014 - Dated:- 15-9-2017 - SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER For The Assessee : Shri Haridas Bhat - AR For The Department : Shri A.K. Nayak - DR ORDER PER PAWAN SINGH(JM) 1. This appeal by the assessee under section 253 of Income Tax Act( Act ) is directed against the order of learned CIT(A) - 22, Mumbai dated 16.01.2014 for the Assessment Year 2009-10. 2. The assess .....

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he case are that assessee is a Partnership Firm engaged in the business of manufacturing of Engineering goods, filed return of income for relevant Assessment Year on 26.09.2009 declaring the total income at ₹.3,43,980/-. The assessment was completed on 29.12.2011 under section 143(3). The Assessing Officer while framing the Assessment Order made an additionof ₹. 5,19,136/- on account of unconfirmed credit balance, added ₹. 8,29,704/- on account of unconfirmed unsecured loan, di .....

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- on account of unconfirmed credit balance. The learned AR of the assessee argued that during the assessment the assessee was asked to reconcile the net difference of ₹ 8,03,398/- being difference in the closing balance difference as per the books of the assessee. The assessee submitted that ₹ 2,84,262/- was on account of interest charged by the party on outstanding payment with reference to the balance payment of ₹ 5,19,136/-, the assessee furnished the proper reconciliation o .....

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ions of the parties and gone throughthe orders of the authorities below. The Assessing Officer during the assessment proceedings observed that the assessee has shown the purchases from M/s Anil Agency. The said party has shown sales of ₹ 65,95,453/-. And there is a net difference of ₹ 8,05,398/- in the closing balance and in the list of sundry creditors. The assessee was asked to explain and reconcile the difference. The assessee filed reconciliation and contended that its sister con .....

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s to M/s Anil Agency. The issue was remanded to the AO for his remand report. The AO furnished its remand report on 23.10.2013. In the remand report the AO confirmed that the assessee vide its reply dated 30.12.2011 contended that the corresponding journal entry was passed in the books of account of the assessee on 01.04.2009 by debiting M/s Anil Agency and crediting M/s Shree Uma Electricals. The ld CIT(A) concluded that the journal entry was passed on 01.04.2009 in the books of the assessee de .....

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ts remand report dated 23.10.2013, this ground of appeal is allowed. 6. The ground No.2 relates to addition of unconfirmed loan. The ld AR for the assessee argued that the AO made the addition of ₹ 8,29,704/- on account of unsecured loan holding that the assessee holding that the assessee failed to reconciled the loan from its sister concern. It was argued that assessee has shown unsecured loan of ₹ 53,99,916/- in the name of Uma Electricals the assessee gave proper explanation expla .....

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gued that the assessee has manipulated the related party transactions. The explanation of the assessee is after thought. 7. We have considered the rival submissions of the parties and have gone through the orders of the authorities below. During the year under consideration the assessee has shown unsecured loan of ₹ 53,99,916/- in the name of M/s Uma Electricals. On seeking confirmation the AO found that M/s Uma Electricals, which is related concern of assessee have confirmed only ₹ .....

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and report the AO submitted that the difference was rightly added as the documents were not on record during the assessment proceedings. From the contents of the remand report it is clear that the evidence related with journal entry in the books of account of M/s Uma Electricals was filed only at the stage of remand report. The only objection of the AO was that the journal entry in the books of account of M/s Uma Electricals was not filed during the assessment proceedings. Considering the fact t .....

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yment of cost of purchase before 31.03.2009 and copy of the relevant evidence is filed on record. On the other hand the ld DR for the revenue supported the order of the authorities below. It was further argued by ld DR that there is no evidence that the vehicle was put to use before 01.04.2009. 9. We have considered the rival submission of the parties and have gone through the order of the authorities below. The AO disallowed the depreciation holding that the Registration Certificate (RC) of the .....

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n the finding of ld CIT(A) qua this ground of appeal. In the result this ground of appeal is dismissed. 10. Ground No.4 relates to disallowance of depreciation on factory shed. The ld AR for the assessee argued that AO gave his finding that the assessee has not substantiated with documentary evidence that addition was made in the factory building of the assessee. The AO further observed that no proof of source fund, proof of payment was filed before him. The assessee furnished all the evidence d .....

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