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TMI Blog2020 (12) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... tored the appeal to the files of the CIT(A) with a direction to reexamine the dispute with fresh evidences. 3. Pursuant to the directions of the Tribunal the CIT(A) heard the appeal and decided the issue afresh against which the assessee is before me. 4. I find that vide order sheet entry dated 21.08.2019 the Tribunal has asked the DR to call for a remand report from the AO on the details/ documents submitted by the assessee. 5. The first dispute relates to the difference in parties account namely Sultan Singh Dharampal Rs. 25834/- and Rishi Bardana Company Rs. 5133/-. I find that during the remand proceedings the representative of the assessee withdrew this ground and, therefore, the AO could not make any comment nor could verify the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ful consideration to the underlying facts. I fail to understand why the family members were doing business through the assessee when they could have done the commission business in their own name. The assessee is a simple dealer in grains and obviously does not have any big brand name of his own but simply purchasing and selling grains through "mandi", the same could have been done by these three persons also. These transactions in the name of the family members of the appellant raise doubts on the genuineness of the transactions. 11. I further fail to understand how the AO has conceded the issue in respect of Smt. Shashi Rustagi and Smt. Kamlesh Rustagi. In my considered opinion the transactions in the name of the family members appear to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee could not support the expenditure with proper bills and vouchers and the AO made disallowance of 20% on ad-hoc basis on finding that most of the expenditure were incurred in cash. The CIT(A) restricted the disallowance to 10%. 19. Before me the counsel reiterated what has been stated before the lower authorities and the DR supported the findings of the CIT(A). 20. I have carefully considered the orders of the authorities below. I find that during the assessment proceedings the assessee did not produce complete record and even in the remand proceedings complete bills and vouchers were not produced. In my considered opinion looking to the nature of expenses, business of the assessee and the place of business, ad-hoc disallowances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Rs. 86.50 lacs which has jumped to 3.21 crores during the year under consideration this also justifies the slight fall in the GP rate. I, therefore, do not find any merit in this addition and accordingly direct the AO to delete the addition of Rs. 206220/-. 27. Ground No.6 and 7 taken together are allowed. 28. Ground No.8 relates to the addition Rs. 28,560/- on account of alleged interest charged on interest free advances to the family members. 29. During the course of assessment proceedings the AO noticed that the assessee has advanced Rs. 150300/-to Pradeep Rustagi and Rs. 40,100/- to Neeru Rustagi who happened to be the family members. The AO further found that the assessee has paid interest on unsecured loans and, therefore, char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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