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2016 (6) TMI 841 - ITAT KOLKATAUndisclosed expenditure incurred for earning commission - Held that:- All the expenditure were claimed under different heads for earning different incomes for manufacturing dealing and commission, along with salary and other expenses were debited to the profit & loss account. There was nothing brought on record by the AO to establish that any expenditure was separately incurred by the assessee in relation to commission income. In order to attract provision U/Sec 69C of the Act, the onus is on the AO to show that the assessee has actually incurred expenditure and that has remained unexplained. In the present case, we find that the AO added such amount on mere presumption without any basis and it is not permissible under law, therefore, we find no infirmity in the order of CIT-A in delting the addition - Decided in favour of assessee Disallowance of subscriptions, fess & taxes - Held that:- We find that the A.O added an amount of ₹ 32,300/- as the assessee failed to furnish evidence in support of the expenses claimed. The CIT-A found that all the details were available before the AO and incurred such amount of ₹ 32300/- constituted fees towards the renewal of mining license, consent fees to WBPCB, sampling and analysis charges paid to WBPCB Fees paid to West Bengal Directorate Employees Associations & fees paid for liasoning. In view of the same, We agree with the finding of CIT-A that all the payments were incurred for fees & subscription made to the Government for the purposes of assessee’s business - Decided in favour of assessee Addition u/s 40(a)(ia) on disallowance for non deduction of TDS on expenditure claimed as carriage inwards - Held that:- We find that the goods were purchased on F.O.R. basis are evident from the purchase bills of raw materials placed in the paper book and copies of bills which were produced before the A.O and CIT-A having examined such copies of bills showing the value of goods and relying on such evidence, the CIT-A opined that the contention of the assessee was correct and question of deducting TDS does not arise - Decided in favour of assessee Addition u/s 41 (1) - Held that:- The trading liability was not ceased and payments were made thereafter as the CIT-A examined the liability was recorded in books of accounts for capital goods and it was not written off in the books of account and confirmations of the said creditors filed and subsequently the entire amount was paid. In view of the same the application of section 41 (1) of the Act was not justified - Decided in favour of assessee Addition on account of undisclosed purchase of raw material and undisclosed production of finished goods - Held that:- he CIT-A has opined that the percentage of production with respect to consumption of raw materials varies from month to month and the consumption of electricity per metric ton also varied from month to month. In this regard, he relied on the on a decision in the case of Hans Castings Pvt. Ltd. vs Collector of C. Excise, Kanpur [1998 (3) TMI 298 - CEGAT, NEW DELHI] where it held that the production can not be estimated on the basis of consumption of electricity. We find no justification in the order of AO in making addition on the basis of electric consumption in calculating the production on such estimation.- Decided in favour of assessee Disallowance of excess depreciation - Held that:- AO acknowledged the details of addition of fixed assets were before him and asked the assessee to explain the justification of claiming depreciation and referring to further bills as not produced by the assessee is only an assumption and the addition made thereon does not have any support to stand for legal scrutiny as it was made on presumption. Therefore, the order of the CIT-A stands confirmed in deleting the addition - Decided in favour of assessee
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