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2014 (7) TMI 1322 - AT - Income TaxBogus purchases - Difference in the copy of account of Hindusthan Syringes Medical Devices Ltd. with that of the assessee - HELD THAT - We find that complete reconciliation i.e. entry of purchase as on 31.03.2008 for an amount of ₹ 11,12,794/- was filed. Once reconciliation is filed and the purchase entry is explained, we find no infirmity in the order of CIT(A) and the same is hereby upheld. This issue of revenue s appeal is dismissed. Addition of difference in assessee s accounts and Royal Surgical Pvt. Ltd. s - HELD THAT - Assessee got a copy of account in books of Royal Surgical Pvt. Ltd., which was submitted before the AO vide written submission dated 18.11.2010. This copy of account as appearing in the books of creditors i.e. Royal Surgical Pvt. Ltd. was filed before AO and placed on records, clearly indicates that request made by the AO vide letter dated 28.10.2010 has been complied with and there is no discrepancy in the accounts. We find that the CIT(A) has verified the assessment records and considered the ledger copy of that party, which tallies with the assessee firm and hence, the bogus purchases added by the AO has rightly been deleted. We confirm the same. This issue of revenue s appeal is dismissed. Disallowance of interest paid without deduction of TDS - appellant received form No. 15G from the parties but the said forms were not submitted to the appropriate authority of the I. T. Department - HELD THAT - This issue is covered by the decisions cited by the A.R. that if the assessee has received form No. 15G then even if the said forms were not submitted to the appropriate authorities, no disallowance can be made u/s. 40(a)(ia). In view of the above, the disallowance is directed to be deleted. In view of the above reasons, and since the Ld. Sr. DR is unable to produce any contradictory material in the aforesaid order of CIT(A), we find no reason to interfere in the order of CIT(A) and the same is hereby upheld. This issue of revenue s appeal is dismissed.
Issues:
1. Deletion of addition despite differences in account copies. 2. Addition on account of differences in accounts with another party. 3. Disallowance of interest paid without TDS deduction. Issue 1: Deletion of Addition Despite Differences in Account Copies: The appeal by revenue challenged the CIT(A)'s order deleting an addition due to discrepancies in the account of Hindusthan Syringes & Medical Devices Ltd. (HSMDL) with that of the assessee. The AO noted a difference in balances with suppliers, questioning the authenticity of a purchase entry. The CIT(A) deleted the addition, emphasizing reconciliation efforts by HSMDL. The ITAT upheld the CIT(A)'s decision, citing the filed reconciliation and explained purchase entry, dismissing the revenue's appeal on this issue. Issue 2: Addition on Account of Differences in Accounts with Another Party: The revenue contested the CIT(A)'s deletion of an addition concerning differences in the assessee's accounts and Royal Surgical Pvt. Ltd.'s accounts. The AO treated a purchase from Royal Surgical Pvt. Ltd. as bogus due to lack of confirmation and evidence. The CIT(A) overturned this addition, noting compliance with the AO's requests and finding no discrepancy in accounts. The ITAT affirmed the CIT(A)'s decision, upholding the deletion of the addition and dismissing the revenue's appeal on this issue. Issue 3: Disallowance of Interest Paid Without TDS Deduction: The revenue objected to the CIT(A)'s deletion of the disallowance of interest paid without TDS deduction. The assessee received Form No. 15G from parties for non-deduction of TDS on interest payments, which were filed with the CIT. The CIT(A) ruled in favor of the assessee, citing relevant case law and allowing the interest expenses. The ITAT upheld the CIT(A)'s decision, stating that no disallowance could be made under section 40(a)(ia) if Form No. 15G was received, even if not submitted to the tax authorities. Consequently, the revenue's appeal on this issue was dismissed. In conclusion, the ITAT upheld the CIT(A)'s decisions on all issues raised by the revenue, resulting in the dismissal of the appeal.
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