9911796707
TMI Blog2019 (1) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee is dismissed. Addition of undisclosed income - Assessee did not disclose TDS and corresponding income received from Food Corporation of India, Krishnagar, Nadia - Held that:- We hold that the sum of ₹ 2,00,568/- actually received by the assessee together with TDS thereon of ₹ 4,649/- is only reimbursement of expenses which had been routed off as a balance sheet item and which account had been squared off in the said ledger during the year, cannot be brought to tax in the hands of the assessee. CIT-A having accepted the fact that the ledger of transport charges recovery account produced by the assessee is squared off account, ought not to have expected the assessee to first claim the expense incurred as an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.05.2018 against the order passed by the ACIT, CC-VI , Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short the Act ) dated 29.03.2014 for the Assessment Year 2011-12. 2. The first issue to be decided in this appeal is as to whether the ld CITA was justified in upholding the disallowance made in the sum of ₹ 48,500/- u/s 40A(3) of the Act in the facts and circumstances of the case. 2.1. The brief facts of this issue are that the assessee is a partnership firm running a rice mill and had filed its return of income for the Asst Year 2011-12 on 27.9.2011 declaring total income of ₹ 5,09,968/-. The ld AO observed in his order that the authorized representative of the assessee appeared from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e us, except making a bald statement, no evidences were submitted by the assessee for incurrence of the said expenditure. Hence we hold that the ld CITA had rightly confirmed the disallowance u/s 40A(3) of the Act in the facts and circumstances of the case. Accordingly, the Ground No.1 raised by the assessee is dismissed. 3. The next issue to be decided in this appeal is as to whether the ld CITA was justified in confirming the addition of ₹ 2,05,217/- towards undisclosed income in the facts and circumstances of the case. 3.1. The brief facts of this issue are that during the assessment proceedings, the ld AO noted that the assessee did not disclose TDS amounting to ₹ 4,649/- and corresponding income of ₹ 2,05,217 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion made by the ld AO as undisclosed income in the sum of ₹ 2,05,217/-. Aggrieved, the assessee is in appeal before us. 3.2. We have heard the rival submissions. We find that the assessee had furnished the ledger account of transport charges recovery account before the ld CITA and the ld CITA acknowledges that it is a squared off account. This goes to prove that the transport charges incurred by the assessee on behalf of FCI had been debited in a separate account in Balance Sheet ( and not routed through profit and loss account as an expense) and thereafter the same was reimbursed by FCI to the assessee and on said reimbursement, the account gets squared off. Since FCI had paid transport charges , it had deducted TDS of ₹ 4,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d payment of provident fund in the facts and circumstances of the case. 4.1. The brief facts of this issue are that the ld AO from the perusal of the tax audit report observed that the assessee had made delayed remittance of employees provident fund to the tune of ₹ 19,460/- beyond the due dates prescribed under the PF Act. Accordingly, the same was disallowed in the assessment. The ld CITA observed from the chart of date of payments for each month, that the payments have been made before the due dates taking into account the grace period of 5 days by placing reliance on CPFC s Circular NO. E.128(1) 60-III dated 19.3.1964 as modified by Circular No. E11/128(Section 14-B Amendment)/73 dated 24.10.1973. Accordingly, he granted relief ..... X X X X Extracts X X X X X X X X Extracts X X X X
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