9911796707
TMI Blog2015 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... asseessee and revenue for statistical purposes. Disallowance on account of ESI and EPF - delay in payment - CIT(A) deleted the addition - Held that:- No infirmity in the order of ld. CIT(A) as the contributions by employees are regulated by sections 2(24)(x) r.w.s. 36(1)(va) of I.T. Act than under section 43B of I.T. Act. But in the light of decision of ITAT, Delhi “C” Bench in the case of Addl. CIT vs. Vestas RRB India Limited (2004 (5) TMI 245 - ITAT DELHI-C ) one of the issue in that case being of addition under section 2(24)(x) of IT Act, the deposit of employees contribution to PF etc. in this case as in that case being late, but before the due date of return, the same is eligible as deduction as per the said decision. Thus, the assessee has rightly been allowed relief of ₹ 1,49,429/-. - Decided in favour of assessee. - ITA No. 91(Asr)/2006, ITA No.117(Asr)/2006 - - - Dated:- 27-11-2014 - A. D. Jain, JM And B. P. Jain, AM,JJ. For the Petitioner : Shri Ravish Sood, Adv. For the Respondent : Shri Tarsem Lal, DR ORDER Per B. P. Jain, Accountant Member: These cross appeals of the assessee and Revenue arise from the order of the Ld. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,47,094/- in the preceding year. On examination of the purchase bills from M/s Rajiv Electric Trading Company, Jalandhar, the assessee was asked to furnish copies of accounts in the books of account of M/s Rajiv Electric Trading Company. The statement submitted was as under :- I am not maintaining any books of A/c so I hereby certify the ledger A/c of M/s ATM Forging as to be correct true statement of affairs for F.Y. 2001-02. Sir, I have closed firm M/s Rajiv Electrical Trading Co. and presently working as proprietor of M/s Friends Electrical, Focal Point Market, Focal Point, Jalandhar. 5. Similarly, with regard to purchase from M/s Krishna Hardware Mill Store, the purchases were made and on being asked to furnish copies of accounts, the account was submitted as under :- Sir, since I have not kept any books of A/c; but only the vouchers. As such I certify the copy of my A/c as appearing in the books of M/s A.T.M. Forging for the period ending 31.3.02 as to be correct true. I have closed my shop at Shivpuri Market popularly known as Shiv Market. I have closed down my business because of losses and presently in service. 6. Copies of accounts of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d correct return of income on the basis of audited books of accounts. It is requested that no adverse inference may kindly be drawn on account of transaction with the parties mentioned in your letter since assessee made genuine transaction with them and duly purchased goods from these parties. 8. On enquiry, the A.O. brought on record that payments have admittedly been declared by the assessee to have been made in cash to M/s Rajiv Electric Trading Co. and its Sales Tax number mentioned on sale voucher in fact does not exist and no Sales Tax return has ever been filed by the said concern. No books of account were maintained by M/s Rajiv Electric Trading Co. The bill does not contain any description of goods and the assessee has failed to substantiate consumption of goods in the absence of any documentary evidence or record. M/s Rajiv Electric Trading Co. is not assessed to income tax. In view of the facts, the A.O. concluded that it is apparent that there exist no such concern in the name of M/s Rajiv Electric Trading Co. and fictitious/bogus purchases arranged by the assessee in order to reduce its income with a view to evade its proper tax liability has been debited in the bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s line and not from a reputed dealer. In fact there are indeed purchases from repute dealers like M/s Emm Kay Electricals etc. Just a comparison between a bill of this concern and a bill of Krishna Hardware Mill Store is sufficient to show what an actual bill is like and what a bogus bill is like. (xi) Shri Rakesh Chadha as well as the assessee have utterly failed to lead any evidence to prove the genuineness of these transactions. Shri Rakesh Chadha, in his statement has dropped a few names from whom he allegedly made purchases. Regarding withdrawals from the bank, it was stated that some of the cash withdrawals were made by Ludhiana based parties. None of these submissions are supported by any evidence. The withdrawals from the account are substantial. The least withdrawal is of ₹ 3.50 lacs. There is a single cash withdrawal of ₹ 23 lacs on 23,02.2002. It is not probable that the alleged Ludhiana based parties would have allowed so much of credit to this person and accepted payment in lump sum in cash later by making withdrawals from the bank directly. Obviously, he has made these submissions after being tutored by the assessee and his counsel. The fact is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been printed by the assessee to show the sales by those concerns to the assessee. The partners of the firm have used these accounts as benami and the specific amount of cash has been withdrawn on the same date or soon thereafter on which cheques have been deposited in the concern by the assessee. There are no other payments to any other persons as one would have done in the normal business. The said concerns were not having any PST/CST numbers or not assessed to income tax. In the circumstances and facts of the case, the ld. Departmental Representative prayed to confirm the order of ld. CIT(A) and to reverse the order of ld. CIT(A) with regard to the relief allowed. 14. We have heard the rival contentions and perused the records of the case. There is no dispute to the facts as regards the arguments made by the ld. Counsel for the assessee that the purchases have been debited as per bills on record but there are many deficiencies in the bills as recorded by the A.O. It is also not under dispute that the payments declared to have been made to such parties have been withdrawn on the same date or soon thereafter and the same has not been rebutted by the ld. Counsel for the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
