9911796707
TMI Blog2022 (7) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to substantiate its claim of expenses and depreciation as claimed before the AO. It was incumbent upon the assessee to substantiate its claim by filing evidences. No explanation had been offered regarding reliability of the accounts. Assessing Officer categorically recorded finding regarding unreliability of accounts on account of the fact that the auditors refused to put their signatures on the audit report. The assessee failed to justify its stand. In the absence of relevant evidences, we do not see any reason to interfere in the findings of the authorities below. We, therefore, uphold the orders of authorities below and reject the grounds raised by the assessee. - ITA No. 597/Del/2018 - - - Dated:- 15-7-2022 - SHRI KUL BHARA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance of Rs. 72,52,000/- made by the AO on account of proportionate interest expenditure. 7. (i) On the facts and circumstances of the case the learned CIT(A) has erred in confirming the disallowance of Rs. 5,71,81,890/- made by the AO on account of proportionate interest payment. (ii) That the disallowance was made by the AO despite the advances having been given out of business expediency. 8. On the facts and circumstances of the cases the learned CIT(A) has erred in confirming the addition of Rs. 1,25,62,073/- made by the AO on account of outstanding liabilities, invoking the provisions of Section 41(1) of the Act. 9. On the facts and circumstances of the case the learned CIT(A) has erred in confirming the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounds of appeal . 2. Facts giving rise to the present appeal are that the assessee is a public limited company and is engaged in the business of extraction and processing of iron ore products. The assessee filed its return of income on 30.09.2011 at Nil income and claimed current year loss at Rs. 74,46,71,321/- under the normal provisions and at book profit of Rs. 7,51,20,510/- u/s 115 JB of the Income-tax Act, 1961 (in short the Act ). The case of the assessee was selected for scrutiny assessment under CASS. In response to the statutory notices, learned authorized representative of the assessee attended the proceedings. While framing the assessment the Assessing Officer noticed that the auditors of the assessee company did not accept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54470000/- (v) On a/c of Road Development Exp. (as discussed in para-10) 111403000/- (vi) On a/c of o/s balance to OCB (as discussed in para 11) 11163000/- (vii) Disallowance u/s 14A 524340963/- (on discussed in para-12) 4354300/- ASSESSED LOSS 220330358 Income u/s 115JB 7,51,20,510/- Add: disallowance u/s 14A 4354300/- Assessed Book Profit u/s 115JB 7,94,74,810/- 3. Aggrieved against the order of the Assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not furnishing the evidences, the Assessing Officer was justified in proceeding and passing best judgment order u/s 144 of the Act. Ground nos. 1 2 are, therefore, rejected. 7. Apropos ground nos. 3 to 15, learned CIT DR heavily relied on the orders of the authorities below and submitted that the assessee has grossly failed to substantiate the claim. The auditors have also not signed the audit report. In the absence of the trading results the Assessing officer was justified in adopting the profit @ 3% of the gross turnover and thereby making addition of Rs. 18,33,53,700/-. Further, in respect of the proportionate disallowance of interest expenditure on the basis that there was difference between payment of interest and receiving o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een placed on record by the assessee to substantiate its claim of expenses and depreciation as claimed before the Assessing Officer. It was incumbent upon the assessee to substantiate its claim by filing evidences. No explanation had been offered regarding reliability of the accounts. The Assessing Officer categorically recorded finding regarding unreliability of accounts on account of the fact that the auditors refused to put their signatures on the audit report. The assessee failed to justify its stand. In the absence of relevant evidences, we do not see any reason to interfere in the findings of the authorities below. We, therefore, uphold the orders of authorities below and reject the grounds raised by the assessee. 9. Ground no. 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
