Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 791 - AT - Income TaxAddition on account of difference in debtors and creditors - information called by the AO u/s 133(6) of the Act directly from the selling/purchasing parties with respect to the account of the assessee appearing in their books of accounts - CIT(A) deleted the addition - Held that:- The CIT(A) has allowed the appeal on the ground that the AO should have summoned these parties as well the assessee and recorded their statement on oath and allowed the cross-examination to the assessee before drawing adverse inference against the assessee but as per the facts as emerging from the orders of the authorities below, the assessee has not asked for the cross examination before the AO and the CIT(A) and rather the assessee has submitted before the AO that its accounts are correct.No such evidence has been brought on record by the assessee before us to substantiate that the assessee asked for the cross examination of these four purchasing/selling parties. In our considered view the interest of justice will be best served , if the matter is restored to the file of the AO to denovo determination of the issue with respect to differences in the books of accounts of the assessee with respect to sale/debtors and purchases/creditors vis-à-vis balances as appearing in the books of the purchasing/selling parties , with the direction to AO to grant proper and adequate opportunity as per law , to the assessee to explain the differences in sale/debtors and purchase/creditors as appearing in the books of accounts of the assessee vis-à-vis balance as appearing in the books of accounts of the purchasing/selling parties in accordance with the principles of natural justice as enshrined in doctrine of audi alteram partem. - Decided in favour of revenue for statistical purposes. Disallowance u/s. 194H r.w.s 40(a)(ia) on account of brokerage amount - CIT(A) allowed the claim - Held that:- As observed from the orders of the CIT(A) that these expenses of brokerage expenses amounting to ₹ 1,19,089/- were incurred by the assessee in the preceding year and expenses were booked by the assessee in its books of accounts in the preceding year while due taxes has been deducted at source in the relevant assessment years and paid to the credit of the Revenue and the balances are appearing in Schedule G to the audited accounts as creditors as opening balance as at 01-04-2008 and the AO has merely taken the figure from schedule G that has been a schedule of Sundry Creditors . In our considered view, these brokerage expenses amounting to ₹ 1,19,089/- has already been booked as expenses in the preceding years and due TDS has been deducted by the assessee for the previous year as per the facts emerging from the orders of authorities below and hence there is no liability for deduction of TDS on these brokerage expenses of ₹ 1,19,089/- during the current year as it has already suffered due TDS in the earlier years when the same was booked as expenses in those years and in the current assessment year, the amounts are taken by the AO from the opening balance of sundry creditors as on 01-04-2008 as per schedule G to the audited accounts and hence in our considered view no disallowance is called for u/s. 40(a)(ia) of the Act read with Section 194H of the Act as these brokerage expenses of ₹ 1,19,089/- pertains to the brokerage expenses of the earlier years. We, therefore, uphold and sustain the orders of the CIT(A) in which we do not find any infirmity and order the deletion of addition of ₹ 1,19,089/- made by the AO to the income of the assessee - Decided in favour of assessee
|