9911796707
TMI Blog2014 (5) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... Reductions made - Validity of consideration of the additional evidences under Rule 46A(3) of the Rules – Held that:-The decision of the previous assessment year has been followed that there is no merit in the grounds of appeal of the Revenue - The addition of Rs. 75 lacs sustained while disposing of Assessee’s appeal – the order shall cover the addition made on account of inflation of purchases, disallowance of Job Work Charges and addition on account of material inward expenses of the Assessee – Decided against Revenue. Deletion of penalty u/s 271(1)(c) of the Act – Additions on account of inflated purchases - Held that:- CIT(A) has passed a speaking order on the issues and has considered all the facts and law applicable - the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the CIT(A). These are being disposed of with this consolidated order. ITA No. 1125/AHD/2007 (A.Y. 03-04) (Assessee s appeal) 2. The grounds of appeal no. 1,2 3 of the Assessee are as under:- 1. The ld. CIT(A) grossly erred in law and on the facts of the case in confirming and retaining an amount of RS. 1 crore out of addition of Rs. 6,50,97,268/- made by the A.O. on account of alleged inflation of purchases. 2. Having held that the A.O. has not ascertained any irregularities in the appellant s purchases, it cannot be said that whatever is disputed by the Excise Department with regard to purchases of raw material is entirely proved as Bogus Purchases, and the element of suspicion entertained by the A.O. to disallow 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the relevant portion of the assessment order in support of the case of the Revenue. He submitted that the accounts books of the Assessee are not reflecting the correct state of affairs of the Assessee. He submitted that the Department has also preferred appeal against the order of the CIT(A) in reducing the amount of addition from Rs. 6.50 crores to Rs. 1 crore and that issue shall also be covered with the arguments made in the Assessee s present appeal. He relied on the order of A.O. 5. We have considered the rivals submissions and have perused the order of the A.O and the CIT(A) and also the order of the Customs Excise and Service Tax Appellate Tribunal dated 06.08.2012 passed in the case of the Assessee. We find that the Assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds of appeal no. 4,5 6 of the Assessee relating to the issue of disallowance of Rs. 40,000/- out of material inward expenses confirmed by the CIT(A) are also partly allowed. ITA NO. 1329/AHD/2007 (A.Y. 03-04) (Revenue s appeal) 7. The grounds of appeal of the Revenue are as under:- 1. The ld. CIT(A)-XI, Ahmedabad has erred in law and on facts in reducing the addition made on account of disallowance of inflation of purchases from Rs. 6,50,97,268/- to Rs. 1,00,00,000/-. 2. The ld. CIT(A)-XI, Ahmedabad has erred in law and on facts in deleting the addition made of Rs. 48,23,465/- on account of disallowance of job work charges. 3. The ld. CIT(A)-XI, Ahmedabad has erred in law and on facts in deleting the addition made of Rs. 48,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of Job Work Charges and addition on account of material inward expenses of the Assessee and accordingly the grounds of the appeal of the Revenue are dismissed. ITA No. 723/AHD/2010 (A.Y. 03-04 (against penalty u/s. 271(1)(c)) (Revenue s appeal) 10. The only ground of the appeal of the Revenue is as under:- 1. The ld. CIT(A)-XI, Ahmedabad has erred in law and on facts in deletion of penalty levied u/s 271(1)(c) amounting to Rs. 36,89,700/- based on additions made on account of inflation in purchases disallowance on account of job work charges and material inward expenses. 11. The ld. D.R. has relied on the order of the A.O. He referred to para 4 of the penalty order in support of the case of the Revenue. The ld. Counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n without interest and therefore the disallowance out of interest paid by the Assessee was rightly made by the A.O. He referred to the relevant portion of the assessment order in support of the case of the Revenue. The ld. Counsel for the Assessee submitted that the Assessee has advanced Rs. 92.31 lac as interest free advances to two parties and the reserves and surplus are of Rs. 11 crore with the Assessees, apart from non interest bearing funds like share capital of Rs. 8 crore. He relied on the order of the CIT(A). 15. We have considered the rival submissions and have perused the order of the A.O. and CIT(A). We find that the Assessee s has advanced Rs. 92.31 lacs to two parties as interest free loans whereas the Assessee has huge non ..... X X X X Extracts X X X X X X X X Extracts X X X X
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