9911796707
TMI Blog2014 (5) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... the fees paid by Assessee is not in the nature of membership fees but is in the nature of donation or charity – the matter needs re-examination, thus, the matter is required to remitted back to the CIT(A) for re-examination – Decided in favour of Assessee. Addition to the value of closing stock - Scrap sales - Held that:- There is no finding by the CIT(A) about the sale of scrap by the assessee in the subsequent year - CIT(A) while confirming the addition has noted that assessee has not shown with documentary evidence the generation of scrap of 4915.28 kg in 3 days i.e. between 28.3.2011 and 31.3.2008 and had not reconciled the quantitative difference – Assessee needs to be granted one more opportunity to substantiate its stand before C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation in nature . it is held that the said expenditure is non business expenditure. The appellant most humbly submits that on the facts and circumstances of its case and in law no such disallowance can be made as the expenditure incurred is genuine and is wholly for business purpose and duly supported by vouchers/bills. In view there of, the appellant most humbly submits that the additions made by the learned AO requires to be deleted and prays that Hon'ble Tribunal be pleased to hold so now and delete the addition. 2. The learned Commissioner of Income Tax (Appeals) has erred in law and on the facts of the appellant's case in confirming the addition to the value of closing stock of scrap made by the Ld. AO of Rs. 5,79,66 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, industrialist and professionals of Jain Community only. Its membership is limited to Jains only and it is working for Philanthropic activities in education, training, health care, general up-liftment and youth development for this community. It has also taken the initiative to train students for UPSC examinations. One of its objective it to interlace the concerns of industry with the inherent Jain values. Thus, the AO's observation that the payment made to this organization in the nature of donation is correct. Hence the AO's action of disallowing this expenditure is upheld and this ground of appeal is dismissed. 5. Aggrieved by the order of CIT(A), Assessee is now in appeal before us. Before us, at the outset, the Ld AR su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or statistical purposes. Ground No 2 is with respect to addition of value of closing stock: 7. During the course of assessment AO noticed that in the stock statement submitted to the bank, Assessee had shown the scrap at Rs 12,45,797/- whereas in the balance sheet it was shown at Rs 6,66,128/- . AO asked the Assessee to reconcile the difference. AO noted that in the absence of any quantitative details of actual scrap generation, its utilization and sales, the value shown by the assessee was without supporting evidence. He accordingly added the difference of Rs 5,79,669 (Rs 12,45,797 less 6,66,128) as income of the Assessee. Aggrieved by the order of AO, Assessee carried the matter before CIT(A). CIT(A) upheld the order of the AO by ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference in quantity and the difference was only on account of valuation. He further submitted that the stock statement as submitted to the bank was as on 28.3.2011 and that the scrap appearing in the balance sheet as on 31.3.2011 was sold in the next financial year for Rs 9,39,928/-. He thus submitted that the addition made by the AO and confirmed by CIT(A) be deleted. The Ld. D.R. on the other hand supported the order of AO and CIT(A). 10. We have heard the rival submissions and perused the material on record. Before us, the Ld. A.R has submitted that the stock statement that was submitted to the bank was as on 28.3.2011 whereas as per the balance sheet, the figures were as on 31.3.2011 resulting into difference. It has been further sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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