Indian Kanoon - Search engine for Indian Law

This appeal by the Revenue is directed against the order of the Ld.Commissioner of Income Tax(Appeals)-XVI, Ahmedabad ('CIT(A)' in short) dated 10/01/2011 pertaining to Assessment Year (AY) 2007-08. The only effective ground raised by the Revenue in its appeal reads as under:-

ITO vs. Devendra Girdharilal Jain, HUF Asst.Year - 2007-08

The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the AO be restored. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary.

2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as "the Act") was framed vide order dated 17/12/2009, thereby the Assessing Officer (AO in short) made disallowance of the expenditure towards purchases amounting to Rs.2,98,96,050/- and also made VAT penalty of Rs.1,000/-, disallowance of office rent of Rs.60,000/-, disallowance of godown rent of Rs.45,600/- and adjustment made u/s.145A of the Act on account of the difference in closing stock amounting to Rs.5,41,926/-. Against this, assessee filed an appeal before the ld.CIT(A), who after considering the submissions, restricted the disallowance to the extent of 5% of the purchases. However, confirmed the disallowance made on account of the office rent, ITO vs. Devendra Girdharilal Jain, HUF Asst.Year - 2007-08 godown rent and restricted the disallowance made on account of the closing stock. Now, the Revenue is in appeal.

(e) Some of the cheques issued against these purchases were credited in the accounts of M/s.Mohit International and M/s. The Green Book of India which are proprietorship concern of Shri Devendra G. Jain, Karta of Devendra G. Jain HUF, the assessee. Other cheques were credited in the accounts of various "shroffs" (the persons engaged in cheque discounting business). The details (to the extent that could be received from various banks) of all the cheques issued against these purchases and credited in various bank accounts are as per the Annexure attached with the assessment order, which forms part of this assessment order.

ITO vs. Devendra Girdharilal Jain, HUF Asst.Year - 2007-08

- 10 -

Sr.No.   Date                   Item                 Amount(Rs.)
1.       20.04.2006             H. Acid                        7,05,262/-
2.       20.05.2006             H.RDS                         11,78,682/-
3.       09.06.2006             H.RDS                         13,93,031/-
4.       20.06.2006             H.RDS                         13,76,731/-
5.       01.07.2006             H.RDS                          9,80,896/-
6.       01.07.2006             H.RDS                         12,64,453/-
7.       17.07.2006             H.RDS                         20,80,417/-
8.       22.12.2006             H.ACID                        11,23,969/-
9.       21.03.2007             H.RDS                         13,34,297/-
TOTAL                                                    Rs.1,14,37,738/-

M/s.Rohan Dyes & Intermediates Ltd.
Sr.No. Date                     Item                  Amount(Rs.)
1.      01.03.2007              J.ACID                         38,61,312/-
2.      01.03.2007              K.ACID                         35,58,464/-
3.      01.03.2007              H.ACID                         35,58,464/-
4       01.03.2007              H.AVID                         38,61,312/-
TOTAL                                                     Rs.1,48,39,552/-

M/s.Arcata Trade Links Pvt. Ltd.
Sr.No. Date                      Item                Amount(Rs.)

1.    07.12.2006                J.ACID                           10,35,000/-
TOTAL                                                         Rs.10,35,000/-


M/s.Vishal Enterprise

Sr.No.         Date              Item                  Amount(Rs.)

1.             20.12.2006        RDS                              7,73,760/-
TOTAL                                                          Rs.7,73,760/-

M/s.Yogeshwar Enterprise

                                       ITO vs. Devendra Girdharilal Jain, HUF
                                                          Asst.Year - 2007-08
                                      - 11 -

Sr.No.            Date                Item                  Amount(Rs.)

1.                02.03.2007          RDS                              5,64,246/-
TOTAL                                                               Rs.5,64,246/-

M/s.Navrang Corporation.
Sr.No.       Date                    Item                   Amount(Rs.)

1.                08.09.2006                                         12,45,754/-
TOTAL                                                             Rs.14,45,754/-