9911796707
TMI Blog2012 (8) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... above tax case appeals are as follows: The assessee company is engaged in the business of manufacture of Indian Made Foreign Liquor (IMFL). It filed its return of income for the assessment year 2005-06 on 31.10.2005 admitting a total income of Rs.57,33,742/-. After the case was processed under section 143(1) of the Income Tax Act, it was taken up for scrutiny and notice under section 143(2) of the Act was issued to the assessee. Pursuant to the same, the assessee furnished all the details required by the Assessing Officer. The Assessing Officer, after verifying the details filed by the assessee, passed the assessment order under section 143(3) of the Act on 28.12.2007 disallowing a sum of Rs.12,52,19,585/- claimed by the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law is concerned, it is seen from the materials available on record that, during the relevant assessment year, the assessee company, which is engaged in the business of manufacture of Indian Made Foreign Liquor, claimed a sum of Rs.6,38,82,966/- towards purchase of old bottles from local parties and a sum of Rs.6,99,23,820/- from CST parties. The assessee was asked to furnish confirmation with regard to the suppliers of old bottles along with their postal addresses, amount of purchase, date of purchase, mode of payment, etc., on or before 16.11.2007 The assessee issued letters under section 133(6) of the said Act to the parties calling for the said details. On various occasions, the assessee requested the Assessing Officer to extend the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount payee cheques, it is possible to verify the genuineness of the transactions made, thereby mitigating the risk of evasion and that the said provision had been circumvented by the assessee by resorting to various methods. On the basis of the above findings, the Commissioner held that the purchases made by the assessee should be treated as cash purchases and as provided for under section 40A(3), 20% of purchases should be disallowed in addition to the disallowance of 10% based on the order of Tribunal in respect of the assessee's case for earlier years. Accordingly, the Commissioner, while sustaining the total disallowance to the extent of Rs.3,09,58,287/-, partly allowed the appeal. The Tribunal held that the provisions of section 40A(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the employees, who had received the amounts, had submitted monthly statements along with list of persons, to whom the amounts were paid. The Assessing Officer found that, in support of the payments, self-made vouchers were prepared and the vouchers did not contain the address or designation of the persons to whom the amounts were paid. Though the assessee claimed that the said payments were made to brokers and other middlemen as incentives to promote brands, yet, the Assessing Officer disallowed the same relying upon the Explanation to section 37(1) of the Act on the ground that the said payments were bribe paid to TASMAC employees. The Commissioner of Income Tax (Appeals) also, disagreed with the claim made by the assessee to treat th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly disallowed by the Assessing Officer and confirmed by the Commissioner of Income Tax (Appeals). On the basis of the above materials, the Tribunal partly allowed the respective appeals. 6. It is clear from the above materials available on record that, as far as the issue regarding purchase of old bottles by the assessee is concerned, by notice dated 17.10.2007, the assessee was asked to furnish the confirmation from all its suppliers. On several occasions, the assessee sought time to furnish such confirmation. Despite that, the assessee did not furnish the same. But however, the assessee had submitted a letter dated 15.11.2007 stating that the assessee was not able to furnish the same. Even thereafter, time was granted till 26.12.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we do not find that the Tribunal had committed any error in passing the said order. Therefore, we are not inclined to interfere with the same. 7. As far as the claim made by the assessee towards sales promotion is concerned, it is seen from the materials available on record that the assessee had submitted that payments were made by its employees to TASMAC employees. It is seen that, in support of the payments, self-made vouchers had been prepared and the vouchers did not contain the address or designation of the persons to whom payments were made. Though the assessee had claimed that the said payments were made to brokers and other middlemen as incentives to promote brands, yet, the Assessing Officer had disallowed the said claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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