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TMI Blog2017 (7) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... tly needs some money, the ladies use to give the same out of their savings. This saving habit of housewives in this country, more particularly, in southern part of country, cannot be ignored by the AO. When the assessee s mother claims that she saved money given for household expenses and filed an affidavit before the Assessing Officer, this Tribunal is of the considered opinion that the claim of the assessee s mother cannot be brushed aside so lightly without examining it. The assessment year under consideration is 2013-14. Even a mason or construction worker is receiving salary of ₹ 400 to 500 per day. In this economic situation, there is no reason to doubt the capacity of the assessee s mother to give ₹ 5,05,000/- to the assessee. Tribunal is of the considered opinion that all the ingredients which are necessary for proving the gift were established by the assessee. Therefore, the CIT(Appeals) is not justified in confirming the addition. TDS u/s 194C - Disallowance of freight charges paid to the contractors - assessee contends that the payment was a composite one for purchase of iron ore and transportation, therefore, not liable for deduction of tax - HELD TH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For the Appellant : Shri S. Sridhar, Advocate For the Respondent : Shri Gopikrishna, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: Both the appeals of the assessee and Revenue are directed against the very same order of the Commissioner of Income Tax (Appeals)-3, Coimbatore, dated 31.08.2016 and pertain to assessment year 2013-14. Therefore, we heard both the appeals together and disposing of the same by this common order. 2. Let s first take assessee s appeal in I.T.A. No.2723/Mds/2016. 3. The only issue raised by the assessee before this Tribunal is that the addition of ₹ 5,05,000/- being the gift said to be received from her mother. 4. Shri S. Sridhar, the Ld.counsel for the assessee, submitted that during the year under consideration, the assessee received gift from her mother to the extent of ₹ 5,05,000/-. According to the Ld. counsel, the assessee filed an affidavit before the Assessing Officer wherein the assessee s mother confirmed the fact of giving gift to the assessee. However, the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... untry, more particularly, in southern part of country, cannot be ignored by the Assessing Officer. When the assessee s mother claims that she saved money given for household expenses and filed an affidavit before the Assessing Officer, this Tribunal is of the considered opinion that the claim of the assessee s mother cannot be brushed aside so lightly without examining it. The assessment year under consideration is 2013-14. Even a mason or construction worker is receiving salary of ₹ 400 to 500 per day. In this economic situation, there is no reason to doubt the capacity of the assessee s mother to give ₹ 5,05,000/- to the assessee. Therefore, this Tribunal is of the considered opinion that all the ingredients which are necessary for proving the gift were established by the assessee. Therefore, the CIT(Appeals) is not justified in confirming the addition. Accordingly, the orders of the lower authorities are set aside and the addition of ₹ 5,05,000/- made by the Assessing Officer is deleted. 8. Now coming to Revenue s appeal in I.T.A. No.3144/Mds/2016, the first ground of appeal is disallowance of freight charges paid to the contractors. 9. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extent of ₹ 44,30,887/- which was disallowed by the CIT(Appeals). Therefore, according to the Ld. counsel, the CIT(Appeals) has rightly restricted the disallowance to ₹ 44,30,887/-. 11. We have considered the rival submissions on either side and perused the relevant material available on record. The assessee contends that the payment was a composite one for purchase of iron ore and transportation, therefore, not liable for deduction of tax. The assessee also claims that in view of Section 194C(6) of the Act, in the case of those transporters who have Permanent Account Number, tax need not be deducted. In respect of others, who have no Permanent Account Number, the payment was made to the extent of ₹ 44,30,887/-, which was disallowed by the CIT(Appeals). The fact remains that the Permanent Account Number was furnished by the assessee except in respect of payment made to the extent of ₹ 44,30,887/-. Moreover, it is not in dispute that the payment made by the assessee is composite one for iron ore and transport of the same. Therefore, the CIT(Appeals) has rightly restricted the disallowance at ₹ 44,30,887/-. Hence, the same is confirmed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee invested in Multi Commodity Exchange, which was not reflected in the financial statement filed by the assessee. According to the Ld. D.R., the assessee claims before the Assessing Officer that she is not trading, but someone might have used her Permanent Account Number. The Assessing Officer has found that exact amount of investment was not ascertained as the transactions were squared off on the same day or within few days. Therefore, the Assessing Officer added the sum of ₹ 5 lakhs being the investment made in Multi Commodity Exchange. The CIT(Appeals) deleted the addition without any material. Therefore, according to the Ld. D.R., the order of the CIT(Appeals) is not justified. 18. On the contrary, Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the PAN of the assessee was used by someone and no investment was made by the assessee. Therefore, according to the Ld. counsel, the CIT(Appeals) has rightly deleted the addition. 19. We have considered the rival submissions on either side and perused the relevant material available on record. When the transaction was not ascertainable in Multi Commodity Exchange by citing Permanent Accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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