HAR NARAIN AGARWAL TH, L/H PREM CHAND GARG,NEW DELHI vs. ACIT, CIRCLE-41(1), NEW DELHI

Heard and perused the record.

As the case was called for hearing, non-appeared for assessee and the record shows notices have been repeatedly issued to the assessee including e- mail. No more opportunity is justified. Arguments of ld. DR were heard who supported the findings of Ld. Tax Authorities below.

It can be appreciated that the assessee is engaged in the business of trading and export of food grains and also in the business of storage of food grains with two firms M/s. Kannu Exports and M/s. Gulmarg Ice Factory & Cold storage. The case of assessee was selected to examine introduction of capital in the year and Ld. AO observed that assessee had received business advance of Rs. 2,94,43,513/- from Japan Corporation which is lying unaltered over the years. Assessee was unable to give a satisfactory reply as to why this amount stands in the book and has not been paid. Ld. AO considered the amount to be income of the assessee and made the addition which is sustained by Ld. CIT(A) on the basis that assessee was unable to satisfy what was the nature of receipts and considering the facts arrived a conclusion that if there standing as trade credits for year’s addition u/s 41of the Act is justified. The grounds raised by assessee are primarily questioning the justification of addition u/s 41 of the Act without there being any material on record to show the nature of receipt. The findings of ld. Tax Authorities require no interference. Grounds have no substance and consequently the appeal of assessee is dismissed.