TMI Blog2004 (11) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... year relevant to assessment year 1994-95. In a calendar year, the Excise year starts from 1st of July every year and ends on 30th June of the subsequent year. Hence for the assessment year 1994-95, there are two parts of different Excise years that are involved [ i.e., from 1-4-1993 to 30-6-1993 (3 months) from 1-7-1993 to 31-3-1994 (9 months)] for assessment year 1994-95. For the said two Excise years, Mr. H.E. Dada Kalandar - a partner and a Registered arrack contractor participated for bidding in the excise auction conducted by the Government of Karnataka. Only registered contractors can participate for bidding in such auctions. For both of the Excise years, as per material evidence on record, he was declared as the successful bidder a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... starts from 1st July every year and ends on 30th June of subsequent year. Thus, the first three months of the accounting period relevant to the assessment year under consideration, i.e., the period from 1-4-1993 to 30-6-1993 will fall in the excise year 1992-93 and the remaining 9 months i.e., period from 1-7-1993 to 31-3-1994 will fall in the excise year 1993-94. From the copies of the certificates of registration of excise contractors dated 31-5-1993 and 27-5-1993 relied upon by the learned AR and which have been discussed in the preceding paragraph, I find that both the registrations are in respect of excise year 1993-94. In other words, if the contention of the learned AR that the appellant did bid for the auction as the Managing P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm and allowability of interest and remuneration to partners have substantially been amended w.e.f. assessment year 1993-94 onwards. As per section 184, a firm is to be assessed as a firm if an instrument evidences the partnership and the individual shares of the partners are specified in that instrument. The certified copy of the deed of partnership is to be filed first time for assessment year 1993-94 which was filed and the firm was treated as such. The concept of registration of partnership is done away with. The Assessing Officer is not to enquire into the genuineness of the firm so as to accord the status of firm as such. He therefore submitted that the decision of Hon ble Supreme Court in Biharilal Jaiswal s case ( supra ) which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of firm has undergone a substantial change w.e.f. 1-4-1993. The concept of registered firm and unregistered firm is done away with. As per the earlier provision of section 184, the assessee was to make necessary application for registration of the firm and to claim the status as registered firm. As per section 185, the Assessing Officer on an application received for registration, was to enquire into genuineness of the firm and its constitution. He was further empowered to refuse registration in case he was not satisfied with the existence of a genuine firm. In the present scheme of the Act w.e.f. assessment year 1993-94 onwards no power is available to the Assessing Officer to verify the genuineness of the firm. All what is required unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obtained the approval for transfer of license for carrying on the business in the name of firm, it will amount to violation of State Excise Act and rules framed thereunder. However, on applicability of section 184 of the Act, the firm is to be assessed as such. Consequently the interest and remuneration payable to partners are to be allowed. 5. The next issue in appeal relates to addition of a sum of Rs. 98,290 as unaccounted purchases invoking the provision of section 69B ( sic 69C) of the Act. 5.1 The Assessing Officer reconciling the trading account held that there is excessive sales over purchases by about 5,620 litres of arrack. The purchase of such arrack is not recorded. Accordingly the value of purchase price was added as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d expenditure towards purchases, the expenses are business revenue in nature and are accordingly to be allowed as such. No sale can be effected without corresponding purchase. Thus the expenditure of purchases are required to be allowed. The proviso inserted in section 69C is w.e.f. assessment year 1999-2000 and accordingly not applicable for the year under appeal. We accordingly direct the Assessing Officer to delete the addition of Rs. 98,290. 6. The last ground of appeal relates to charging of interest under sections 234A, 234B 234C of the Act. The same are consequential in nature. This ground is accordingly dismissed. I.T.A. No. 139/Bang./2001 7. The only issue in appeal relates to deletion of disallowance of outstanding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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