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2013 (8) TMI 556 - AT - Income TaxAddition made on account of bogus purchases to the tune of Rs.17,59,225/- - Assessment order passed under Section 143(3) dated 30th of December, 2008 were that the assessee in individual capacity is a civil contractor. The allegation of the AO was that the assessee had made bogus purchases – Held that:- The commodity supplied were not subject to sales tax, therefore, the CST/ST number were not mentioned on the bills. Further, it has also been noted that in respect of some of the parties, the entire amount could not be paid during the year under consideration, therefore, the part of the amount remained outstanding which was paid in the subsequent year through account payee cheques – Thus, purchases were not bogus – Decided against the Revenue. Bad debts written off – Held that:- After considering the totality of the facts and circumstances of the case as also the case law cited of TRF Ltd. Vs. CIT [2010 (2) TMI 211 - SUPREME COURT] we are not inclined to intervene with the factual as well as legal finding of learned CIT(A) on the issue of write off of sundry balance. In the result , no force in this ground of the Revenue. Hence dismiss. Disallowance made u/s 40(a)(ia) of the Act amounting to Rs.1,35,98,554/- without considering the fact that the payment of TDS was made into the government in contravention of the provisions of Section 200(1) of the Act, 1961 – Held that:- Relying upon the decision in the case of CIT Vs. Nestle India Ltd. [2005 (2) TMI 41 - DELHI High Court ], wherein it was held that Where assessee had deducted tax at source from royalty payment in the same financial year and deposited the same in the next financial year within limitation prescribed under Chapter XVII-B r.w.s. 200(1), no disallowance of royalty payment could be made by invoking Section 40(a)(i) - As per the amended provisions, if the payments have made before the due date of filing of the return then the same is allowable, ld. CIT(A) has not examined the each and every detail of payment and the corresponding dates of the deposit of T.D.S. - Remanded back to CIT(A) for the limited purpose to examine the dates of the deposits of the T.D.S. and if the same is as per the law as pronounced in the case law cited above then the same should be allowed – Decided against the Revenue.
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