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TMI Blog2015 (3) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... terest received and interest paid by the assessee to sister concerns namely M/s Pearl Beverages Ltd. and M/s Jaipur Beverages & Food Industries P Ltd. 2. The Ld. CIT(A) failed to appreciate the fact that this was as sham transaction and that there was no justification in taking or giving loans to sister concerns. 3. The appellant craves to be allowed to add any fresh grounds of appeal and or delete or amend any of the grounds of appeal. 2. The brief facts of the case are that the Return of income was filed online in this case on 29.10.2007 declaring income at Rs. NIL. The return was processed u/.s 143(1) of the I.T. Act and later on it was selected for scrutiny under CASS. Notices u/s. 143(2) and 142(1) were issued and served upon the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Page 3 and stated that the AO has rightly made the addition in dispute by declaring as sham transaction. He also draw our attention towards the impugned order vide para 5.1 and 5.2 of the impugned order at Pages 10-13 and stated that Ld. CIT(A) has wrongly deleted the addition in dispute on the basis that no such disallowance has been made in the previous as well as subsequent years, which is totally wrong because the AO after thoroughly examining all the evidences has declared the transaction in dispute as sham. Therefore, the impugned order may be cancelled by accepting the Appeal filed by the Department. 5.1 Ld. Counsel of the assessee has relied upon the order of the Ld. CIT(A) and stated that the Revenue Authority has not made su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate proceeding, it is argued by the Id. AR that the loans raised by the appellant have been used for acquiring fixed assets in earlier years, to meet losses suffered in the past and to partly give loans to sister concern at the same interest rate. It is argued that the appellant is engaged in the business of trading in shares, financing and investments. The loan transactions have been carried out through account payee cheques and the same have been duly recorded in the books of accounts. The receipt and payment of interest has also been recorded in the books of accounts. The copy of loan accounts were duly confirmed by the concerned parties and submitted before the AO for verification during the assessment proceeding. The said particu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness is the prerogative of the businessman and the AO cannot step into his shoes. Rejection of the books of account and disallowance of expenses cannot be done whimsically without proper basis. The impugned disallowance of Rs. 26,02,839/- therefore, cannot be sustained either on facts or in law. The same is, therefore, deleted." 6.1 After going through the order passed by the Revenue Authorities especially the impugned order of which relevant praras are reproduced as above, we are of the considered view that loan transactions have been carried out through account payee cheques and the same has been duly recorded in the books of account. The receipt and the payment of interest has also been recorded in the books of account. It is not dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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