9911796707
TMI Blog2013 (12) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... e of business of the assessee - The expenditure in question is not incurred for any purpose which is an offence within the meaning of Explanation to Section 37(1) – Decided in favour of assessee. - ITA No.905/Rjt/2010 - - - Dated:- 8-2-2013 - T K Sharma and D K Srivastava, JJ. For the Appellant : Shri D R Adhia For the Respondent : Shri Avinash Kumar ORDER:- Per: T K Sharma: This appeal by the Assessee is against the order dated 25.2.2010 of the ld.CIT(A)-XVI, Ahmedabad for the assessment year 2007-08. 2. Brief facts of the case are that the assessee is a firm engaged in the business of manufacturing of Fire Hose Pipes, Agricultural Hose Pipes, Heavy Duty Rubberize Hose Pipes. For the assessment year under appeal it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore this Tribunal on the following Ground: 1. The ld. CIT(A) has erred in law confirmed lump sum addition on fall in GP of Rs.12,61,810/- is not correct 3. At the time of hearing Shri D.R.Adhai, the ld. AR of the appeared and pointed out that that in the case of assessee s sister concern viz M/s New Age Industries, for the assessment year 2005- 06, the Tribunal has also confirmed the addition of Rs.5,00,000/- because in that case the vouchers amounting to Rs.3,08,409/- were not found and vouchers amounting to Rs.1,18,231/- were not verifiable. In this case no defect in the books of accounts has been found, therefore, there is no justification for making the addition without rejecting the books of account u/s 145(3) of the Act. As a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the AO observed that the assessee firm has made the penal interest on late payment of interest to the Bank amounting to Rs.1,98,026/-. On appeal, before the ld. CIT(A) the assessee made following submissions: Assessee firm is utilizing bank credit limits to meet working capital requirement. As part of sanction of working capital limits, the assessee firm is required to submit the monthly stock statement and monthly books debt statement, quarterly information about its working and CMA data annually. If the above statements are not submitted in time, the bank charges penal interest which is in addition to normal interest charges by the bank. Penal interest is not penalty for infringement of any statute or law but only a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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