9911796707
TMI Blog2022 (3) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... incidental charges. We notice that the assessee gave certain orders for purchase of material but could not reach to a consensus for the discount on the purchases and the seller did not accept the proposal. Due to this reason, the assessee cancelled the contract and for doing this act the advance amount was forfeited. All these series of facts and looking to the gross turnover of the assessee company, we find merit in the contention of the ld. Counsel for the assessee that the alleged amount is purely a business loss which is incurred in the regular course of doing the business of purchase and sale. We are also satisfied that the alleged amount cannot be treated as capital advance as it was paid for purchasing raw material used by the cem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a trading/ business loss of said ₹ 6,61,299/- debited by the Appellant under the head Advance Forfeited in their Profit and Loss Account. That Ld Assessing Officer appears to have erroneously and or illegally changed interest under section 234.B of the Income Tax Act 196( Act in brief) through said section 234B of the Act is not attached, applicable and or attributable in the instant case even otherwise, interest charged u/s 234B and also u/s 234D of the Act is excessive. 2. That impugned assessment order together with the (Tax) Computation Sheet thereto attached and forming part thereof and also the impugned Appellate Order so far as it/ they relate to the said addition of ₹ 6,61,299/- and interest under section 234B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing guidance from the decision of the Hon ble Supreme Court (supra), we condone the delay of the assessee and proceed to hear the case on merits. 4. Sole grievance of the assessee relates to disallowance of trading/business loss claimed at ₹ 6,61,299/- on account of advance forfeited. Brief facts pertaining to this issue are that the assessee is a private limited company and has declared income of ₹ 24,93,790/- in the return of income filed on 23.10.2017. The case selected for scrutiny under CASS followed by serving of notices u/s 143(2) and 142(1) of the Act. As far as the issue of the appeal is concerned, we find that the assessee has given advance of ₹ 6,61,299/- to M/s. Ridhi Siddhi Crusher and Land Transport LLC, F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by a foreign seller namely M/s. Ridhi Siddhi constituted at UAE. 7.1. We notice that the assessee is engaged in business and turnover during AY 2017-18 is 59.60 crores (approx) and profit before tax is ₹ 24,70,215/-. The assessee used to purchase low silica high grade limestone from M/s. Ridhi Siddhi in the past. Invoice dated 12.12.2016 placed at page 131-132 support this fact. The assessee also entered into a sale and purchase contract on 14.12.2016 and certain terms and conditions were finalized. A copy of agreement is placed at page 107-117 of the paper book. In Clause 6.0 of this agreement a condition is mentioned as per which in the event of the buyer not purchasing the material, an amount of USD9772 (Indian ₹ 6,61,299/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
