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TMI Blog2015 (12) TMI 1504X X X X Extracts X X X X X X X X Extracts X X X X ..... or the records from the post office and verified the same. Without doing the said exercise, the AO ought not to have made the addition simply by relying on the information given by the post office, when the assessee also has documentary evidence certified by the Post Master to support its claim. We further take note of the fact that the Post Master issued the certificates duly signed and stamped on day-to-day basis in the regular course of its business and which was the basis of audited books of accounts maintained by the assessee. We find force in the contention of the ld. AR that without rejecting the books of accounts maintained by the assessee company, the addition made simply on the basis of information from the post office without being corroborated or verified cannot be accepted. We further find that from a perusal of the statement of facts filed by the AO along with the appeal, vide letter dated 17.02.2005, the post office has brought to the notice of the AO that the documents for a period from 1999 to March 2002 has been weeded out. It was clearly mentioned that documents pertaining to period from April 2003 to July 2004 comprising of 1353 pages has been taken away by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B.S. Gupta Charitable Society through post office. The break-up of the receipt as per the assessee was as under :- Name Receipt Total Money Order VPP B.S. Gupta Charitable Society 411354 50811210 51222564 Neeraj Clinic Pvt. Ltd. 378320 60857050 61235370 Grand Total 112457934 The AO was in receipt of information from the Senior Post Master (HSG)- I, Mukhya Dak Ghar, Rishikesh that from the account of the assessee company maintained in the post office, payment of ₹ 11,61,30,008/- was made to Mr. R.K. Gupta, Managing Director (MD) of the assessee company and from the sister concern during the previous year. A monthly break-up of the aforesaid payment has been given by the CIT (A) in page nos.1 2 of the impugned order. Since there was a difference of ₹ 36,72,074/- between the two figures of receipts (i.e. that furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Rishikesh. The ld. CIT (A) noted that the assessee's figure was based on the daily certificate of payment issued by the very same post office which had communicated to the AO the figures computed based on monthly basis. Taking note of this discrepancy, the ld. CIT (A) directed the AO to seek clarification from the post office and to furnish report to him. Further, it had been taken note by the ld. CIT (A) that the AO, pursuant to the said direction of the CIT (A), had recorded the statement of Shri Lalit Mohan Joshi, the Post Master at that time on 25.02.2009 u/s 131 of the Income-tax Act, 1961 (hereinafter 'the Act'). The gist of the statement thus recorded had been extracted by the ld. CIT (A) in page 3 of the impugned order which reads as under :- The information supplied by the post office to the AO must have been based on the record available at that time. As regards the discrepancy of ₹ 36,72,074/, no clarification can be given without reference to the records since a long time has passed. The old records cannot be made available now because they have been weeded out as per the departmental rules. Since the information was made available on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Hence, in terms of evidentiary value, the documents submitted by the assessee carry greater weight than the document supplied by the post office to the AO. 1.4 Secondly, even though there were two recipients, i.e. the assessee and its sister concern, the post office furnished a combined monthly breakup of disbursement. Even if, for argument sake, it were contended that the figure supplied by the post office to the AO was correct, there is no basis to hold that the extra amount came to the assessee and not to the sister concern. The same AO assessed both the concerns if he did not take an adverse view in the case of the sister concern, it is difficult to appreciate how he could do so in this case. It is also noticed that the post office mentioned that the payments had been made to Mr. R.K. Gupta on behalf of said two concern In the case of B.S.Gupta Charitable society, the AO accepted the assessee's figure. In this case, the assessee's figure needs to be accepted because it is duly substantiated with reference to the daily certificates of payment from the post office. On the other hand, the information sent by the post office to the AO is not only unsubstantiated but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o him, therefore, the AO correctly added this amount as unaccounted income in the hands of the assessee. The ld. DR contended that the ld. CIT (A) erred in deleting the said addition simply because the Post Master did not turn up to give certain clarification regarding data stored in computer cannot be a ground to delete the addition made by the AO. Therefore, the ld. DR wants us to reverse the order of the ld. CIT (A) and restore the order of the AO. 5. On the other hand, ld. AR contended that the assessee is a private limited company and its sister concern is a society are involved in treating patients suffering from Epilepsy. According to the ld. AR, the financially weak patients are treated at a discounted rate through the society, whereas, other patients who can afford treatment are treated through the assessee company. According to the ld. AR, first the patients suffering from Epilepsy need to be thoroughly checked by the Doctors and thereafter, medicines are prescribed for 3 5 years which the patients have to consume without a break. Since the patients are from all around India, the medicines are sent by post through VPP and the amount collected is remitted through the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id order. In the said circumstances, the ld. AR does not want us to interfere with the order passed by the ld. CIT (A). 6. We have heard both the sides and perused the material on record. We find that the assessee company is engaged in treatment of patients suffering from Epilepsy. The assessee company has a sister concern known as B.S. Gupta Medical Charitable Society which is for poor people suffering from the same disease. We find that once patient suffering from Epilepsy contacts them and a thorough check up is done by the Doctors and then they advice the patients either to take medicine for 3 to 5 years depending upon the seriousness of the disease, which the patients have to consume without a break. The assessee company caters for patients who can afford payment for the medicines without any subsidy. Since patients are residing all around the country the medicines are sent by VPP to them and they pay the cost by money order which gets credited in the post office account and on the very same day, a certificate of the amount credited daily is certified and issued by the Post Master to the assessee company likewise to the sister concern also. We take note of the fact that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led for the records from the post office and verified the same. Without doing the said exercise, the AO ought not to have made the addition simply by relying on the information given by the post office, when the assessee also has documentary evidence certified by the Post Master to support its claim. We further take note of the fact that the Post Master issued the certificates duly signed and stamped on day-to-day basis in the regular course of its business and which was the basis of audited books of accounts maintained by the assessee. We find force in the contention of the ld. AR that without rejecting the books of accounts maintained by the assessee company, the addition made simply on the basis of information from the post office without being corroborated or verified cannot be accepted. We further find that from a perusal of the statement of facts filed by the AO along with the appeal, vide letter dated 17.02.2005, the post office has brought to the notice of the AO that the documents for a period from 1999 to March 2002 has been weeded out. It was clearly mentioned that documents pertaining to period from April 2003 to July 2004 comprising of 1353 pages has been taken away by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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