TMI Blog2021 (7) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... e not filed with the Registrar of companies and income tax department. As regards, the source of the amounts received, the company had sold a property of the company for ₹ 12,15,000/-, out of which ₹ 10,00,000/- was received in the bank before days of the transaction with the assessee. The copy of the sale deed is attached. Out of the same sum ₹ 9,80,000/- was transferred to Mrs. Rekha Gupta for which copy of the bank statement was produced by the assessee before the CIT(A). These facts were not disputed by the AO at the time of filing remand report before the CIT(A). As regards to the loan amounting from M/s Anant Shree Financial Services Pvt. Ltd., the Director of this company has mentioned about this loan to Rekha Gupta. Mr. Siddharth Gupta, the Director of this company filed memorandum and articles of association along with Income Tax Return. This is also one of the companies in which Mrs. Rekha Gupta is one of the Directors. The other Directors are family members. The assessee has again mentioned the dispute with her son pending in Company Law Board. This company sold a property out of which was received in bank just before the day of transaction betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 62. 4) The Id.CIT(A) has not appreciated that the assessee failed to discharge the primary onus cast upon her by section 37(1) of the IT Act, 1961 by proving with documentary evidence that the expenditure of ₹ 4,57,42,900/- claimed to have been made by the assessee to M/s.N.K.Gold Medallion Pvt. Ltd. was genuinely incurred by the assessee wholly and exclusively for the purposes of the assessee's business. 5) The Id.CIT(A) has not appreciated that the assessee's conduct in respect of her contended purchases from M/s.N.K.Gold Medallion Pvt. Ltd. has not been in harmony with prepondence of human probabilities. 6) The Id.CIT(A) has not appreciated that the assessee failed to prove the credit worthiness of the lenders and also the genuineness of transaction before the Assessing Officer by producing relevant credible documentary evidence in respect of unsecured loan of ₹ 39,25,000/-, the lenders of which did not even have commensurate income as per their respective return of income. - 3. The assessee is an individual and is carrying on the business of purchase and sale of Gold Bars. In this case, the return of income was filed on 17/09/2013 declarin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Gold Pvt. Ltd. was genuinely incurred by the assessee wholly and exclusively for the purposes of assessee s business. The CIT(A) has not appreciated that the assessee s conduct in respect of her said purchases from M/s N. K. Medallion Gold Pvt. Ltd. has not been in harmony with preponderance of human probabilities. The CIT(A) has not appreciated that the assessee failed to prove the creditworthiness of the lenders and also the genuineness of transaction before the Assessing Officer by producing relating credible documentary evidence in respect of unsecured loan of ₹ 39,25,000/. 6. The Ld. AR submitted that the CIT(A) has rightly taken a cognizance of all the relevant evidences filed before the appellate authority as there was a dispute and only details of return, bank statement were given at the time of assessment proceedings and this reason is sufficient to admit the additional evidence by the CIT(A). The Ld. AR further submitted that the purchases made by the assessee was all accepted in the past and also in the present assessment year. All the purchases were proper and was proved before the Appellate Authority and no adverse comment by the Assessing Officer was made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Swaran Traders for F.Y. 2013-14 in their books of account reflecting the aforesaid transactions. As per the trading and P L a/c of Swaran Traders, the proprietorship concern of the assessee for F.Y. 2013-14, the sales have been declared at ₹ 91,S3,97,793/- and the gross profit has been shown at ₹ 10,90,472/-. 8.7 In the rejoinder the appellant has submitted that M/s N.K. Gold Medallion Pvt. Ltd. has shown Swaran Trader as Trade debtor of the similar amount of ₹ 457.43 lacs. The turnover of M/s N.K. Gold Medallion Pvt. Ltd. was ₹ 90,758.28 lacs for the year under consideration. The turnover of M/s N.K. Gold Medallion Pvt. Ltd. was substantial enough to transact this volume with the assessee. Further, the assessee is in family relation with the Directors of M/s N.K. Gold Medallion Pvt. Ltd. In the F.Y. 2013-14, the balance was settled by way of multiple sales from Swaran Traders to M/s N.K. Gold Medallion Pvt. Ltd. The two concerns have made sales and purchases which are mutually independent. The appellant is dealing in gold bullion which is purchased and sold at the market rates applicable on day to day basis.; The quantity of gold bullion purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. Further the impugned transaction is supported by several independent documents in the form of purchase invoices, levy of VAT, deposit of VAT, transaction recorded in the books of account of both the parties involved7tKe~balances shown in the audited balance sheets of the parties, confirmation from the seller party i.e. M/s N.K. Gold Medallion Pvt. Ltd. etc. The Assessing Officer has not commented adversely on the additional evidences submitted by the assessee. Therefore, I delete the addition made by the Assessing Officer and allow the ground taken by the assessee. It is pertinent to note that the assessee is dealing in gold bullion which is purchased and sold at the market rates applicable on day to day basis. The quantity of gold bullion purchased was 16,469.09 grams and the quantity sold was 16,335.07 grams. This shows that the transactions were not just squaring up the balances but the actual transactions took place. The assessee had accounted for the profits and losses involved in the transactions and had paid the income tax applicable. The assessee and M/s N.K. Gold Medallion Pvt. Ltd. charged and paid VAT as applicable. The turnover of ₹ 91,83,97,793/- de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices Pvt. Ltd., the appellant has submitted that the Director of this company has mentioned about this loan to Rekha Gupta. Mr. Siddharth Gupta, the Director of this company filed memorandum and articles of association along with Income Tax Return. This is also one of the companies in which Mrs. Rekha Gupta is one of the Directors. The other Directors are family members. The appellant has again mentioned the dispute with her son pending in Company Law Board. This company sold a property for ₹ 14,50,000/- out of which Rs. l 1,50,000/- was received in bank just before the day of transaction between the company and Mrs. Rekha Gupta. The copy of the sale deed is enclosed. Out of the above amount Rs. l 1,45,000/-was transferred to the assessee. Copy of the bank statement of the lender company has been enclosed. 14.5 I have carefully considered the facts of the case, evidences on the record and submission of the appellant. The Assessing Officer has accepted the genuineness of the following loans in the remand report - (i) ₹ 3,00,000/- from Shri Anil Gupta (ii) ₹ 5,00,000/- from Smt. Nupur Gupta Since, there are no other adverse facts, the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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