TMI Blog2022 (7) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... these details available on record which specifically remains uncontroverted by the Revenue authorities, considering the total turnover of the assessee firm which is approx 28.72 crores and the consistency of claiming such commission expenditure, we are of the considered view that disallowance of commission expenditure was not called for as the assessee has furnished sufficient documentary evidences to prove the genuineness of the said claim of commission expenditure incurred by the assessee for business purposes for selling its goods. Thus, ground no. 2 raised by the assessee is allowed. Addition u/s 68 - Disallowance of interest expenditure and bogus loan creditors - HELD THAT:- Out of the three in the case of Sourav Shipping India P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Complete details of the address, PAN No. and other financial documents stood filed before the Revenue authorities. The genuineness of the opening balance of the loan has not been doubted by the ld. AO. Under this given facts and circumstances we fail to find any merit in the action of the ld. AO making addition for unexplained cash credit received from these two. Interest disallowance - As amount paid to Sourav Shipping India Pvt. Ltd. and Sourav Film City Pvt. Ltd. remains to be sustained for the reason that the directors of both these companies have stated before the Revenue authorities to be an accommodation entry provider and failed to rebut this fact by placing any material in its favour. Except the interest of Rs. 2,82,247/- a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted. [Relief Claimed - Deletion of Rs.6,56,140/- Rs. 18,500,000/-]. 4. That your Appellant craves leave to urge, to add, to alter, to amend or to adduce further Grounds of Appeal on or before the date of appeal hearing. 3. Brief facts of the case as culled out from the records are that the assessee is a partnership firm engaged in the wholesale business of bonded goods. Income of Rs. 55,91,330/- declared in the return of income filed on 27.09.2014 for AY2013-14. Case selected for scrutiny through CASS followed by serving of notices u/s 143(2) 142(1) of the Act. Various details were called for during the course of assessment proceedings. Ld. Assessing Officer (in short ld. AO ) framed the assessment order after making vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s brought forward from preceding years. 6. Per contra ld. D/R vehemently argued supporting the orders of the lower authorities. 7. We have heard rival contentions and perused the records placed before us. Ground no. 1 is general in nature which needs no adjudication. 8. Ground no. 2 relates to the disallowance of commission paid at Rs. 44,25,705/-. Revenue authorities have alleged that these are non-genuine expenditure and the assessee could not substantiate the claim with any document. We, however, on perusal of the records and specially the list of the persons/concerns to whom the commission has been paid placed at page 6 to 7A of the paper book dated 29.06.2021, observe that except few, most of the commission expenditure are pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - b) M/s. Dharmaraj Trading Co. Rs. 1,00,000/- c) Gunius Wax Chemicals Pvt. Ltd. Rs. 7,50,000/- 10. Out of the above three in the case of Sourav Shipping India Pvt. Ltd. it is a fresh loan taken during the year. The director of this company namely Chandan Mondal has accepted to have provided accommodation entry in the nature of unsecured loans to Parsan Brothers in lieu of commission. Further, Chandan Mondal has subsequently sworn in an affidavit declaring that statements made by him on 18.11.2016 before the Revenue authorities were not true and correct. We, however, find no merit in this contention of the assessee that it is a genuine loan because during the assessment proceedings itself detailed statement was taken from Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om Gunius Wax Chemicals Pvt. Ltd. at Rs. 7,50,000/-and the same is deleted. Thus, out of total addition of Rs. 18,50,000/- u/s 68 of the Act, we confirm the addition at Rs. 10,00,000/-. 12. As regards the interest disallowance of Rs. 6,56,140/- is concerned we find that Rs. 78,247/- paid to Sourav Shipping India Pvt. Ltd. and Rs. 2,04,000/- paid to Sourav Film City Pvt. Ltd. remains to be sustained for the reason that the directors of both these companies have stated before the Revenue authorities to be an accommodation entry provider and failed to rebut this fact by placing any material in its favour. Except the interest of Rs. 2,82,247/- all the remaining interest amount are paid on the opening balances of the loans brought forward f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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