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TMI Blog2016 (4) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- The ld.AR produced before us the various records such as copies of stock register, copies of invoice and delivery challan, bank statement evidencing the payment, copy of ledger account, summary of LDO purchased and consumed during the year and comparative analysis for various year for consumption which shows that the materials was actually received. The AO added the same as bogus purchase without carrying any further verification especially when he accepted the submission of the assessee M/S Vinav Trading Co and rejecting the plea for the other without bringing on records any other independent evidence such as specific confirmation from M/S Mahalaxmi and cross examination by the assessee. In our opinion the assessee had explained th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment u/s 143(3) vide order dated 06.03.2013 at ₹ 2,26,75,300/-by making two additions first ₹ 9,08,111/- on account of non deduction of TDS on commissioner paid and second ₹ 4,23,875/- for bogus hawala purchases of LDO. 3. The issue raised in the first ground of appeal is against the confirmation of additions of ₹ 9,08,111/- by the CIT(A) as made by the AO u/s 40(a)(ia) of the Act for non deduction of TDS. The Ld AO added the commission of ₹ 9,08,111/- for not complying with the provisions of section 194H of the Act as stated in para 4 of the assessment order which was also confirmed by the CIT(A) for the same reasons that expenses were subject to deduction of TDS under chapter XVII of the Act and the disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident- (i) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed:] The second proviso to section to 40(a)(ia) is declaratory and curative in nature and it has retrospective w.e.f. 1st April,2005 being the date from which the sub clause (ia) of section 40(a) was inserted by finance(No 2) Act 2004. 3.3. In view of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses. We therefore respectfully following the decisions of the Delhi High Court and of the coordinate bench in assessee s own case, set aside the issue to the file of the AO to examine the matter and decide accordingly after giving a reasonable opportunity to the assessee. 3.4 This ground is allowed for statistical purpose. 4. The second ground is against the confirmation of additions of ₹ 4,23,875/- on account of hawala purchases. The facts are that the investigation wing of the departments passed on some information that M/S Vinav Trading Company and M/s Mahalaxmi Corporation issued bogus bills to the assessee without supplying materials which was part of hawala scandal. The VAT department of Govt. of Maharashtra unearthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount, summary of LDO purchased and consumed during the year and comparative analysis for various years for consumption which were filed as page no. 11 to 35 of the paper book. It was submitted by the ld AR that all these records adequately proved the supply of materials having been received actually and therefore the addition made of ₹ 4,23,875/- for alleged bogus purchases were based on the suspicion , conjectures and surmises and be deleted. The ld Dr on the other hand relied on the order of lower authorities. 4.3. We have considered the rival submissions and perused the materials on records. We find from the order of authorities below that VAT departments conducted search on various dealers and found that they were engaged in ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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