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TMI Blog2022 (3) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... f income for the assessment year 2013-14 on 28/9/2013 declaring an income of Rs. 4, 37, 43, 060/-. Assessment under section 143(3) of the Income Tax Act, 1961 (for short "the Act") was complete by order dated 18/3/2016 by making an addition of Rs. 3.96 crores under section 68 of the act, Rs. 6 Lacs on account of disallowance of labour charges, loading and unloading expenses, missionary repair and maintenance etc, Rs. 19, 29, 050/-on account of disallowance of Festival, telephone, travelling and sales promotion expenses and a sum of Rs. 7, 94, 315/-on account of disallowance of repair and maintenance expenses. 3. Assessee preferred appeal before the Ld. CIT(A) challenging all the four additions but the Ld. CIT(A), by way of impugned order c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was invested by Sh. Suresh Garg, Director by taking advance from M/s Puja Equity advisors (P) Ltd but in spite of repeated demands and granting several opportunities the assessee failed to produce any documentary evidence in support of genuineness and creditworthiness of the transaction. 6. It was noticed by the authorities below that from the documents relating to the Puja Equity advisors, as produced by the assessee, it was noticed that the amount advanced was not commensurate and consistent with their returned income, the company did not even have an office, the company possess the tangible assets of only Rs. 94, 889/- whereas the company had to press 24 crore worth of investment and loans and advances, the expenditure on staff and sala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Court in the case of PCIT vs. NRA Iron and Steel (P) Ltd (2019) for 12 ITR 161 (SC) and the decisions of the Hon'ble jurisdictional High Court in the cases of PCIT vs. NDR Promoters Pvt. Ltd. (2019) for 10 ITR 379 (Delhi), CIT vs. NR Portfolio Private Limited (2014) 42 taxmann.com 339 (Delhi), CIT vs. Nova Promoters &Finlease (P) Ltd. 18 taxmann.com 217 etc., are applicable to the facts of the case. 10. We have gone through the record in the light of the submissions made by the Ld. DR. In PCIT vs. NRA Iron and Steel (P) Ltd (supra) and NR Portfolio Private Limited (supra) it is held that it is legitimate for the learned Assessing Officer to look into the issues like - whether the two parties are related or known to each other, or mode by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eyond the pale of papers, it is incumbent upon the assessee to cooperate with the learned Assessing Officer in dispelling the doubts, which the circumstances raised in the mind of the learned Assessing Officer. It is not open for the assessee to say that the learned Assessing Officer shall not enquire into anything beyond the papers that were submitted bythe assessee. 12. Orders of the authorities below reveal that the assessee has not complied with the requirements of the learned Assessing Officer in the exercise of forming satisfaction as to the creditworthiness of the share applicants or the genuineness of the transaction. Mere paperwork by the assessee does not take the authorities anywhere, when the learned Assessing Officer suspected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nged under grounds No. 6 and 7, is in respect of Rs. 1 19, 29, 050/-towards the disallowance of 1/8thportion of the expenditure met further car expenses, conveyance, Festival expenses, telephone expense, travelling expense and sales promotion expenses. On this aspect learned Assessing Officer recorded that the log books of car and complete details of telephone calls were not produced by the assessee and according to the assessee is not feasible to produce the same because the vehicles are almost under the direct control of the management. Ld. CIT(A) recorded that the explanation offered by the assessee was only superficial and log books are maintained mandated really in any concern of whatever the size. On this aspect also, no submissions a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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