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TMI Blog2020 (2) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that it was not signed by auditor or Director of the company, leading to the inference that the assessee was misusing name of some assessee to show bogus corridor in its books of accounts. There is no proper explanation from the assessee in respect of these reasons recorded by the learned Assessing Officer to draw the inference that the transaction is a bogus one. In the absence of any material touching on the aspect, we are of the considered opinion that the Ld. CIT(A) is justified in confirming the addition. There are no reasons warranting interference with the same. Disallowance of expenses - Assessing Officer who is the first authority directly dealing with the assessee and its business details had taken a view that 25% of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity has no physical existence and not to be found in the given address and the computer generated bills in this case were untrustworthy, ₹ 2,83,988/-on account of disallowance of personal expenses and ₹ 59,000/-on account of disallowance of legal and professional fee. 3. Assessee preferred an appeal before the Ld. CIT(A) and argued that the Assessing Officer failed to appreciate the fact that the office of M/s. Mahaveer Forgings was at a Chandani Chowk and located in the commercial area; that there is no way that the same can be used as a residential area; whereas the inspector had carried out local enquiry and as per his report no such party by name Mahavir Forging was operating; that it is very likely that the inspector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash and on self-made vouchers and the assessee was unable to explain as to why should the expenses be considered fully made for the business purpose. Ld. CIT(A), however, accepted the contention of the assessee in respect of the legal/professional fee to the tune of ₹ 59,000/- to the effect that such an amount was paid to two different persons and, therefore, no TDS was deducted on it. To such extent, Ld. CIT(A) granted relief to the assessee, while confirming the addition on the other two counts. 5. Aggrieved by the order of the Ld. CIT(A) sustaining the addition of ₹ 1,43,48,493/-on account of creditors and ₹ 2,83,998/-on account of disallowance of personal expenses, assessee preferred this appeal before us contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addressee left. If the assessee is available in such address, such notice should have been served on the assessee. If for any reason, the assessee is not available there, it is for the assessee to make arrangements for service of such notice by furnishing the address where the assessee would be available, or to deliver it to some authorised person, or by making request to the postal department to detain the mail till the assessee claims the same. Assessee does not seem to have adopted any of these methods. Address of the assessee is available either with the Tribunal or with the Department, and therefore, there is no point initiating notices of the notices to the address where the assessee is not to be found. In the circumstances, we ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at there was no such company found at the given address and no one in the vicinity was aware of it; c) assessee was asked to produce the party and the assessee submitted that It is not in a position to produce such party; and d) the letterhead of the confirmation sent by the alleged creditor had no phone numbers, no names of the signatory and even the copy of the Balance Sheet was downloaded from the ROC site and not signed by anybody. 9. Coming to the arguments before the Ld. CIT(A), it was observed by the Ld. CIT(A) that without submitting any supporting document, assessee just insisted that the creditor was genuine and that the office of the creditor could not be located by the inspector as it was in Chandani Chowk and variou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. There are no reasons warranting interference with the same. 12. Insofar as the 2ndaddition on account of the disallowance of expenses is concerned, the impugned order speaks that the assessee was issued a number of notices, but there was no compliance with the requirement of the authorities to submit further details and the details of GP and NP ratio for 5 years. Learned Assessing Officer observed that a very shoddy and vague submission was made without furnishing such details. Ld. CIT(A) observed that without complying the requirement of the learned Assessing Officer, the assessee was raising the issue as to whether the addition should be 5% or 50% or 25%. According to her when the assessee cannot prove that the expenditure was m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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