TMI Blog2021 (1) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... th the documentary evidence which were filed before the authorities below, which have not been properly appreciated. It was also noted that during the year the burning loss in the assessee s plant was to the extent of 5.81% which is accurate and as per consumption and production of the finished goods. The addition in dispute is not tenable. Even otherwise, as per settled law, the addition made by the AO was on estimate basis, which is not sustainable, hence, the same is deleted as such. Disallowance of unsecured loan raised - assessee submitted that assessee has taken unsecured loan from Bimla Devi by account payee cheque in routine course of business. Smt. Bimla Devi is the relative of the directors of the company - HELD THAT:- As fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to ₹ 548165, however, the AO has not considered the decrease in the related expenses the expenses of carriage outward is directly related with the expenses vehicle upkeep and maintenance. In view of above, the addition made by the AO is not tenable, hence, the same is deleted as such. Assessee appeal allowed. - ITA NO. 1561/DEL/2019 - - - Dated:- 7-1-2021 - SHRI H.S. SIDHU , JUDICIAL MEMBER Assessee by : Sh. Gaurav Jain, Adv. Sh. Himanshu Aggarwal, CA Department by : Sh. Prakash Dubey, Sr. DR. ORDER PER H. S. SIDHU , JM This appeal filed by the Assessee is directed against the impugned order dated 12.12.2018 passed by the Ld. CIT(A), Hisar in relation to assessment year 2014-15 on the following grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory notice u/s. 143(2) and 142(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) were issued and served alongwith questionnaire which were complied with by the assessee. In response thereto the AR of the assessee attended the proceedings from time to time and filed necessary details of information. After discussions, the Assessing Officer made the addition of ₹ 5,41,426/- on account of disallowance of burning loss; ₹ 3,50,000/- on account of disallowance of unsecured loan raised from Bimla Devi and ₹ 10,00,000/- on account of disallowance out of cartridge outward and assessed the total income of the assessee at ₹ 9,25,350/- u/s. 143(3) of the Income Tax Act, 1961 vide order dated 27.12.2016. Aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute may be deleted. On the contrary, Ld. DR relied upon the orders of the authorities below on this issue. 3.1 I have heard both the parties on the issue in dispute and perused the orders of the authorities below. I find considerable cogency in the contention of the Ld. Counsel for the assessee that there is no standard % of burning loss in furnace it only depends furnace to furnace and only one kind of scrap cannot be used, they used different kind of scrap which has different % burning loss. It was noted that all the purchases are recorded in the books of accounts and details of sponge Iron used along with the documentary evidence which were filed before the authorities below, which have not been properly appreciated. It was also noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived through NEFT though proper banking channel; Mrs. Bimla Devi is an income tax assesee, who is relative of the Director of the Company. It was noted that the cash and bank statement of Bimla Devi for the year 2013-14 alongwith its ITR, computation of income and balance sheet was filed before the authorities below. In this case, as per settled law, the genuineness of the transaction has been established for which assesee is not required to prove source of source and the onus is on the revenue to prove that the transaction is not genuine, which they have failed to prove. Hence, I delete the addition in dispute. 5. As regards addition of ₹ 10,00,000/- on account of cartage outward for alleged inflated expenses is concerned, Ld co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id ₹ 1182164/- as carriage outward for carriage of finished goods and dispatched goods to different locations and paid freight to the transporters. All the payments have been duly supported by the biliti. Copy of all the bilties as a proof of payment were filed. Merely because of comparison with last year the AO has disallowed the carriage outward expenses. All the expenses are properly supported by the evidence of payment. There was a expenditure debited in the profit Loss account Vehicle running maintenance account which has been decreased from ₹ 2453172 to ₹ 548165, however, the AO has not considered the decrease in the related expenses the expenses of carriage outward is directly related with the expenses vehicle u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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