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TMI Blog2020 (4) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... per TDS (26AS) and Books - HELD THAT:- Advances received from various parties and whereas before us the counsel has furnished a reconciliation statement as above. We are of the considered view that reconciliation statement so filed before us needs to be examined/verified by the AO. We accordingly restore this issue to the files of the AO. The assessee is directed to reconcile the entire difference with satisfactory explanation and if the reconciliation is not accepted by the AO then the entire difference of ₹ 1,03,08,430/- shall be treated as the unaccounted receipts of the assessee. Ground treated as allowed for statistical purposes. Condonation of delay - delay of 1223 days - HELD THAT:- Assessee sated that the Director s of the company directed the CA to file Cross Objection on receiving the memo of the appeal filed by the Revenue. It is the say of the counsel that the CA did not file the CO on time which caused the delay in filing and the delay should be condoned. As perused the order sheet entries in revenue s appeal, we find that counsel Mahavir Singh, Advocate is appearing in this case from 28.02.2019 till 05.08.2019 and it is only on 04.10.2019 the Cross O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Reply to the notice was received only from Haguru Engineering Pvt. Ltd. whereas in respect of other two parties no reply were received. The assessee only filed copy of ledger and copy of the bank statement. On perusal of the same the AO found that on the date of issuance of cheque similar amount was deposited in the bank account and was of the opinion that the creditworthiness and the genuineness of the transactions are not established by the assessee. Not satisfied with the reply of the assessee, the AO made the addition of ₹ 2.90 crores u/s 68 of the Act. 7. Proceeding further the AO noticed that the assessee has debited ₹ 72 lakhs as Director s remuneration out of which ₹ 60 lakh was paid to Subhash Dabas and ₹ 12 lakhs was paid to Suraj Mal Dabas. On receiving no justification of salary paid to Suraj Mal Dabas, the AO disallowed the same and made the addition of ₹ 12 lakhs. 8. Proceeding further the AO noticed that the assessee has made investment in shares for the purposes of earning of exempted income. Invoking the provision of Section 14A r.w.r. 8D disallowance was computed and addition was made amounting to ₹ 6,46,438/-. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oadband Communication Ltd. The assessee claimed that during the year under consideration the assessee has taken a loan amounting to ₹ 20,00,000/- from M/s. World Broadband Communication Ltd. Now, the assessee has submitted a chart showing name, address and PAN no. of the loaner company as additional evidences only. Therefore, in absence of any confirmation and other details genuineness, creditworthiness and capacity of the loaner cannot be established. 3.3 Unsecured loan from M/s Victory Portfolio Ltd. The assesses Claimed that during the year under consideration the assessee has taken a loan amounting to ₹ 20,00,000/- from M/s. World Broadband Communication Ltd. Now, the assessee has submitted a chart showing name, address and PAN no of the loaner campany along with balance sheet and bank statements as additional evidences. A perusal of the bank statement shows that during the year under consideration on different dates same amount have been deposited and Withdrawn during same day or next day, giving indication that M/s Victory Portfolio Pvt. Ltd. is not doing any business except providing accommodation entries. In view of the above, decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the cash creditors and deleted the addition of ₹ 2.90 crore. 12. In respect of Director s remuneration, the AO in his remand report observed that the assessee has submitted financial statements, important operational documents, labour muster role, bank guarantee papers duly singed by Shri Suraj Mal Dabas and accepted the work done by Suraj Mal Dabas. On the basis of the remand report the CIT(A) deleted the addition of ₹ 12 lakh. 13. In so far as the addition u/s 14A is concerned. The CIT(A) deleted the addition on finding that there is no exempt income. 14. The addition on account of difference in contract receipts in P L account and as per Form 26AS was restricted to 5% of the difference and addition of ₹ 5,42,550/- was confirmed. 15. Aggrieved by this the Revenue is before us. The DR vehemently stated that the assessee has failed to discharge the initial onus cost upon it by the provision of section 68 of the Act. It is the say of the DR that the assessee has grossly failed in establishing the genuineness of the transaction in the light of the documentary evidences filed by it. Per contra, the counsel for the assessee stated that the assessee has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the transaction by the AO in his remand report, therefore, no interference is call for. 22. Addition u/s 14A r.w.r 8D has been deleted on finding that there is no exempt income. As there is no exempt income no addition is to be made u/s 14A of the Act and the CIT(A) has rightly deleted the same, therefore, no interference is called for. 23. In so far as the difference in the contract receipts shown in the P L account and Form 26AS, before us the counsel for the assessee stated that the amount stand reconciled and furnished a reconciliation statement which is as under: Reconciliation of Receipts as per TDS (26AS) and Books:- Receipts as per TDS claimed and allowed in return of income:- 1. Mera Baba Reality Associates Pvt. Ltd. : 16,19,64,513=00 2. Delhi State New Spare Employees Federation : 4,91,10,281=00 3. Interest received from banks : 16,68,306=00 Shown in the Asstt. order (21,26,63,118) : 21,27,43,100=00 Less : I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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