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TMI Blog2016 (6) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... able before the AO and incurred such amount of ₹ 32300/- constituted fees towards the renewal of mining license, consent fees to WBPCB, sampling and analysis charges paid to WBPCB Fees paid to West Bengal Directorate Employees Associations & fees paid for liasoning. In view of the same, We agree with the finding of CIT-A that all the payments were incurred for fees & subscription made to the Government for the purposes of assessee’s business - Decided in favour of assessee Addition u/s 40(a)(ia) on disallowance for non deduction of TDS on expenditure claimed as carriage inwards - Held that:- We find that the goods were purchased on F.O.R. basis are evident from the purchase bills of raw materials placed in the paper book and copies of bills which were produced before the A.O and CIT-A having examined such copies of bills showing the value of goods and relying on such evidence, the CIT-A opined that the contention of the assessee was correct and question of deducting TDS does not arise - Decided in favour of assessee Addition u/s 41 (1) - Held that:- The trading liability was not ceased and payments were made thereafter as the CIT-A examined the liability was recorded in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred for earning commission. (ii) Ld. CIT(A) has erred on the facts circumstances of the case by allowing of ₹ 32,300/- paid for subscription, fees taxes which was disallowed by the AO for non furnishing of documents in support of payments. (iii) Ld. CIT(A) has erred on the facts circumstances of the case in deleting the addition of ₹ 46,15,761/- which was made by the Assessing officer U/s 40(a)(ia) for failure to deduct TDS as per section 194C of the IT Act against carriage inward / transport charges. (iv) That Ld CIT(A) has erred by accepting the assessee's contention that assessee had not claimed any transportation charges since goods were purchased on F.O.R basis hence the assessee was not liable for deduction of TDS as per section 194C . (v) Ld. CIT(A) has erred on the facts circumstances of the case in deleting the addition of ₹ 11 ,42,075/- which was made by the AO u/s 41 (1) for cessation of trading liability. (vi) Ld. CIT(A) has erred on the facts circumstances of the case in deleting the addition of ₹ 15,83,278/- on account of undisclosed purchase of raw material without properly appreciating the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO to establish that any expenditure was separately incurred by the assessee in relation to commission income. In order to attract provision U/Sec 69C of the Act, the onus is on the AO to show that the assessee has actually incurred expenditure and that has remained unexplained. In the present case, we find that the AO added such amount on mere presumption without any basis and it is not permissible under law, therefore, we find no infirmity in the order of CIT-A, accordingly ground no-1 is dismissed. 5. Ground no-2 is relating to disallowance of subscriptions, fess taxes to an extent of ₹ 32,300/- In the assessment proceedings the assessee claimed a total expenses of ₹ 66,324/- towards fees, subscription and taxes in the profit and loss account. The assessee submitted details of such expenses to an extent of ₹ 34,024/- only, but could not produce any details regarding the amount to an extent of ₹ 32,300/- and for such failure, the AO added the same to the income of assessee. Before the CIT-A, the assessee contended that all details of entire expenditures were furnished at the assessment proceedings and sum constituted thereon was incurred towar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability of deducting TDS and assessee did not bifurcate the transportation charges from cost of goods and did not furnish the same separately in order to avoid the liability of deduction of TDS. The Ld.AR submits that the assessee submitted all the details before the AO and AO could not appreciate it proper manner and all those details are filed in the paper book. We find that the goods were purchased on F.O.R. basis are evident from the purchase bills of raw materials placed in the paper book and copies of bills which were produced before the A.O and CIT-A having examined such copies of bills showing the value of goods and relying on such evidence, the CIT-A opined that the contention of the assessee was correct and question of deducting TDS does not arise. Therefore, we are of the view that the order of CIT-A is justified and therefore, we confirm the same, accordingly the ground no-3 fails, thus dismissed. 7. Ground no- 4 refers to addition of ₹ 11,42,075/- u/s 41 (1) of the Act. During the course of assessment proceedings the AO found that from the list of creditors as furnished by the assessee that the transactions of involving capital goods are old and for non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of undisclosed purchase of raw material and undisclosed production of finished goods of ₹ 72,61,873/- The AO made a comparative chart showing month wise consumption of raw materials and production of finished goods and calculated percentage of production ratio with consumption of raw materials. The AO found variation of 11.08 to 25.25 and found other variation of 302.43 to 1245.50 in electrical consumption and production of finished goods as units consumed per M.T production from a chart of month wise. According to him, is abnormal and for not giving any satisfactory explanation of such variation and the AO concluded that assessee had undisclosed production as well as unaccounted purchase. The AO made addition under the head unaccounted purchase ₹ 15,83,278/- and undisclosed production of ₹ 56,78,595/- totaling to ₹ 72,61 ,873/- . 10. Before the CIT-A, the assessee contended that all the details of consumption of raw material, production of Goods, consumption of electricity month wise were furnished. The assessee submitted that production can not be estimated on the basis of electric consumption. The A.O. did not point out any defect in stock register ..... X X X X Extracts X X X X X X X X Extracts X X X X
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