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TMI Blog2014 (7) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... the validity of reassessment u/s. 147. The ld. CIT(A) has failed to appreciate that the notice for reopening assessment was bad in law and illegal. 4. At the time of hearing, the Authorized Representative of the assessee submitted that he is not pressing this ground of appeal and also made an endorsement to the effect on the grounds of appeal attached to the memo of appeal filed before us. Therefore, this ground of appeal is dismissed as not pressed. 5. Ground no. 3 of the appeal is directed against the order of the Commissioner of Income Tax (Appeals) confirming the addition of Rs. 5.95 lakhs u/s. 69C of the Act. 6. The brief facts of the case are that the Assessing Officer observed that the assessee has credited repairing expenses of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the reason that mode of payment of residual amount was not brought on record, the entry reversed was an afterthought and circumstances under which the entry was cancelled and no other amended certificate was issued by the assessee was not satisfactorily explained. He observed that expenses of Rs. 5,95,000/- remained unexplained. According to the Assessing Officer, provision of section 69C provides that where in any financial year, an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or a part thereof or the explanation offered by him is not satisfactory, the amount covered by such expenditure may be deemed to be the income of the assessee for such financial year. Therefore, he made ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS certificate was rightly issued showing repairing charges of Rs. 10.20 lacs. Since the payment of full amount of Rs. 10.20 lacs was not made, the appellant ought not to have deducted TDS on such amount. Therefore under the given circumstances the A.O. has rightly treated the amount of Rs. 5,95,000/- as unexplained expenses and added the same to the income. The Ld. A.R has not brought on record any evidence to contradict the findings of the A.O subsequently before me. 4.4 As regards the objection of the appellant that the A.O has mentioned unexplained investment in the computation of income does not stand ground since it is just a typographical error. The Assessing officer has elaborately and clearly explained in the body of order that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the assessee referred to the copy of account of the assessee company in the books of M/s SCPL wherein similar entries appear and they have passed the debit entries of Rs. 5,95,000/ - to the account of the assessee on 28-01-2005. A copy of the account of the Assessee Company as well as M/s SCPL has been filed in the compilation of the assessee. 7. The learned DR referred to page 4 of the compilation filed by the assessee which is the account copy of M/s SCPL in the books of the assessee wherein an amount of Rs. 85,000/- has been received on account of service charges in the month of April, 2004 onwards on monthly basis till August, 2004. He submitted that if the amount of Rs. 85,000/- representing monthly repairing service charges is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract were passed on 31- 08-2004 in the books of the assessee company in the account of M/s SCPL and the differential sum of Rs. 5,95,000/- was credited to their account. The assessee has also filed the ledger account copy of the assessee company in the books of M/s SCPL wherein similar entries were passed by M/s SCPL and the differential amount of Rs. 5,95,000/- was debited to the account of assessee company on 28-01-2005 and, therefore, there remains no discrepancy between the account of the assessee company and M/s SCPL. Merely because the TDS was deducted at a higher amount and paid to the credit of the Central Government is not a ground to make the impugned addition in the hands of the assessee company without any basis. The only reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative. 12. From a reading of the above order of the Tribunal, we find that the Tribunal in the hand of the recipient of the amount on account of repairing charges has held that there was bonafide mistake committed by the assessee in the books of account which was rectifiable at any point of time. The Tribunal further observed that the assessee company M/s. Silicon Computech Private Limited has rectified the same and passed necessary entries in the books of account and hence there was no justification for making any addition on this ground. The Tribunal after perusing the copy of profit and loss account of M/s Silicon Computech Private Limited itself observed that M/s Silicon Computech Private Limited has paid correct amount of repa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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