9911796707
TMI Blog2015 (9) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... been provided. The appeal was admitted in the year 2011 by the revenue or this was the last date given to the assessee on 23/3/2015. Even a final chance was given to the assessee on 18/5/2015. The assessee again came with adjournment application, therefore, this Bench rejected the assessee's adjournment application and case is decided on merit. 3. The assessee company was dealing in shares and securities, manufacturing, trading and export of readymade garments and textiles. The return for the year under consideration was filed on 29/10/2002 declaring loss of Rs. 2,18,870/-. The case was scrutinized U/s 143(3) of the Income Tax Act, 1961 (in short the Act). The ld Assessing Officer observed that books of account were maintained in a compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by KIPL. Even telephone bill is paid by KIPL. The involvement of KIPL in the business shown in assessee's business so much so that even some of the vouchers seen were found to be in joint name of assessee company KIPL. As per schedule N to the P&L account, total purchase of fabric garment accessories and stitching and labour charges paid at Rs. 123326186 by KIPL. Further even the trading business of garments not to talk of manufacture or export as the assessee had no infrastructure. Only the assessee company has computer and motor car, furniture and fixture in the fixed schedule of the balance sheet. The ld Assessing Officer asked to submit the copy of bills of consultancy charges, which was admittedly no traceable by the assessee like ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r concern Plaza Securities Pvt. Ltd.. Thus out of total purchase of Rs. 99.59 crores from sister concern was 90% of the purchase are from the sister concern. It is further observed that sale of shares to this very sister concern from whom shares were purchased are to the tune of Rs. 89.33 crores and held that all the shares purchased were sold back to them. These hard facts put a serious questions marked against genuineness of business transactions carried out by the assessee with its sister concern. All the business activity of the assessee company had been carried out at Mumbai operating from the same premises as the sister concern, the auditors are also at Mumbai but for the sake of convenience, registered office is maintained at Jaipur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit from the purchase and sale of garments/textile at Nil. Similarly any loss from share transaction is ignored and net profit from it is also taken Nil. The expenses debited in the P&L account is not allowable as are not found genuine and unsubstantiated or being inadmissible U/s 14A of the Act being incurred against dividend income of Rs. 1103980 which does not form a part of total income. 4. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had allowed the appeal partly by observing as under:- For share loss and debit transaction "3.3 On careful consideration of the facts of the case, the aforementioned discussion of the Ld. A.O. and submissions of the Ld. AR, as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgued that the Assessing Officer had not mentioned as to which expenditure had been incurred for earning the dividend income and therefore, his finding that the entire expenditure was inadmissible U/s 14A was illegal. 4.3 I have carefully considered the facts of the case and submissions of Ld. AR. However, on perusal of the relevant records, I find that there is no dispute regarding the fact that the appellant had earned an income of Rs. 11,03,980/- which was exempt U/s 10(33) of the I. T. Act. Further, it is also an undisputed fact that the claimed expenditures are such that the same cannot be attributed separately to the exempt income and non exempt income. Therefore, in such circumstances, a part of the claimed expenses is to be disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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