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TMI Blog2018 (6) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. Disallowance of rent expenses - Held that:- As AR submitted that given an opportunity the assessee will prove the expenditure through proper evidence. In view of the above submissions of the learned Authorised Representative, we restore the issue to the Assessing Officer for de novo adjudication after due opportunity of being heard to the assessee. Addition on account of difference in total income as per the e–return and as per computation of income - Held that:- AR submitted for an opportunity to be given to the assessee to reconcile the difference. Considering the submissions of the learned Authorised Representative we are inclined to restore the issue to the Assessing Officer for de novo adjudication after due opportunity o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rify the genuineness of purchase and sale transactions the Assessing Officer issued notices under section 133(6) of the Act to all the parties who entered into such transactions with the assessee. However, the notice issued under section 133(6) to Iron Global Ltd. returned unserved. From the reply filed in response to the notices issued under section 133(6) of the Act the Assessing Officer found that the bills / invoice provided by the parties were not genuine and appeared to be self made invoices without proper details. In case of Ruchi Acroni Industries Ltd, the correct details were not provided. He found that two parties viz. Pushkar Economic Services and Ruchi Economic Services, were having same PAN details. Some other discrepancies wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition made by the Assessing Officer. 5. The learned Authorised Representative submitted that the Departmental Authorities without properly considering the submissions of the assessee have arbitrarily made the addition. The learned Authorised Representative drawing our attention to the audit report submitted that the nature of business of the assessee has been clearly specified to be purchase and sale of grains. He submitted, in Col. 28(a) of the Audit Report, the details of food grains purchased have been clearly mentioned. He submitted, during the assessment proceedings the assessee has furnished all details of the sellers and purchasers of goods. He submitted, in response to the notices issued under section 133(6) of the Act the concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts on record, though, the assessee had shown huge purchase and sales turnover to the tune of ₹ 81.64 crore and ₹ 81.65 crore respectively, however, there are no sundry creditors or sundry debtors or even trade advances. Even, the expenditure claimed is a meager amount of ₹ 22,586, compared to the huge turnover shown by the assessee. From the details furnished, the Assessing Officer found that the assessee entered into purchase and sale transaction with seven parties. It is also very surprising and unique that the assessee has sold the goods to the very same parties from whom it has purchased them. This, in our view, is a very unusual happening and outside normal human behavior and conduct. It is not understood, if a part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has challenged disallowance of rent expenses of ₹ 6,000. 9. Brief facts are, during the assessment proceedings, while verifying assessee s claim of deduction on account of expenditure debited to the Profit Loss account the Assessing Officer observed that the assessee failed to furnish any proof with regard to rent payment of ₹ 6,000. Accordingly, he disallowed the said amount. Though, the assessee challenged the disallowance before the first appellate authority, he also sustained the same. 10. We have considered rival submissions and perused materials on record. The learned Authorised Representative submitted that given an opportunity the assessee will prove the expenditure through proper evidence. In view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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