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TMI Blog2012 (7) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... 57,575/-. The A.O. mentioned trading addition of Rs. 11,81,515/- and in the computation of income trading addition of Rs. 1,81,515/- only was made. 3.1. Detailed written submissions were filed before Ld. CIT (A) which are tabulated in the order of Ld. CIT (A) at pages 2 & 3. Various discrepancies noted by Assessing Officer were explained also which has been discussed by Ld. CIT (A) in para 3.3 to 3.6 are as under :- " 3.3 It was intimated by the appellant that his accounting software is in LAN network with the computers of respective companies i.e.. M/s Nestle, Idea, ITC etc. in this system complete sale and purchases as well as the stock are directly monitored by the respective company. Therefore conclusion of AO that valuation of stock is not verifiable is not justified. It was further argued that no defects have been pointed out in the accounting system of appellant, which has been regularly followed from year to year. 3.4 Regarding the transactions with SFG agencies, Bhilwara & Pawan Specialist, it was argued that it is only a posting error to the extent that instead of one party, account of another party has been debited, however total sale and purchase are correctly record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome. 9. The Assessing Officer observed in his order that assessee has not included interest income of Rs. 24,441/- from Indusind Bank and Rs. 25,767/- from ITC Ltd. Therefore, he made addition of Rs. 50,208/-. Detailed submissions were filed before Ld. CIT (A) which has been noted at pages 5 & 6 in the order of Ld. CIT (A). It was explained that assessee has received interest and also paid interest and net of the interest has been shown by the assessee. Supporting evidences were also filed. The Ld. CIT (A) ascertained the factual aspects that assessee has shown this interest. Accordingly, he deleted the addition. Findings of Ld. CIT (A) has been recorded in para 5.3 of his order are as under :- " 5.3. A.O. has made this addition without proper examination of the facts. As intimated by appellant the sum of Rs. 7,72,314/- is the net figure of interest paid and received from various parties and includes the above mentioned figures of interest received from Indusind Bank & ITC Ltd. Complete details of interest account are available in the ledger of appellant which has not been considered by A.O. therefore addition of Rs. 50,208 is not justified and the same is directed to be delete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame is directed to be deleted. Ground No. 4 is thus allowed." 12. After considering the orders of the Assessing Officer and Ld. CIT (A) on which reliance has been placed by respective parties, we find no infirmity in the finding of Ld. CIT (A). Ld. CIT (A) has ascertained that the commission or brokerage received by assessee from Idea Cellular has already been shown. Necessary evidences were examined by Ld. CIT (A) and thereafter it was found that the Assessing Officer has made the addition without applying mind or without understanding accounting system followed by assessee consistently. Accordingly we confirm the finding of Ld. CIT (A) on this issue also. 13. Next ground of the department is against deleting the addition of Rs. 1,27,179/- on account of bogus unsecured creditors. 14. The Assessing Officer made certain enquiry from M/s. SFG Agencies, Bhilwara, M/s. Pawan Specialist, Jaipur and he found that they are not genuine creditors. Therefore, the Assessing Officer made an addition of Rs. 1,27,179/-. Detailed written submissions were filed before Ld. CIT (A) which are incorporated at pages 8 & 9 of his order. It was explained that due to clerical mistake, the entrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income on account of winning from lottery through claimed the credit of TDS of Rs. 2,54,925/- in the return. Reply was sought from the assessee. However, Assessing Officer was not satisfied with the reply filed. Therefore, he added the income while completing assessment. Again detailed submissions were filed before Ld. CIT (A) which has been incorporated in the order of Ld. CIT (A) at pages 10, 11 & 12. It was explained that winning from lottery or from puzzle, in fact, is an incentive received by assessee on account of buying the material from ITC Ltd. as per their Scheme. The assessee is a stockiest of ITC Ltd. During the year and as per past practice, the ITC Ltd. issued Credit Note for performance incentives in form of claims. The nature of this performance incentive is a reimbursement of expenses for claims (Schemes as given by company for 'Retailers' through 'Distributor' as evident from letter dated 9.6.2010 of the company). It was further explained that company while issuing Form 16A, has wrongly or as a policy matter has mentioned such payment under section 194B (winning from lottery & puzzle @ 30%) whereas the assessee has received incentive only. The distributor based o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above findings are finding of facts which remained uncontroverted as Ld. D/R has placed reliance on the order of Ld. Assessing Officer only. Since the findings remained uncontroverted, therefore, there is no reason to interfere with the finding of Ld. CIT (A). Accordingly, we confirm the order of Ld. CIT (A) on this issue also. 19. The remaining issue is against deleting addition of Rs. 11,80,780/- on account of income of M/s. Aman Enterprises. 20. The Assessing Officer noticed that in the TDS return the assessee has reported 23 entries of deductees. On examination it has been found that the assessee has deducted tax at source under section 194A in case of M/s. Aman Enterprises also. The TDS of Rs. 1,21,620/- has been made on the interest amount of Rs. 11,80,780/-. The interest has also been found credited in the copy of account of Aman Enterprises as appearing in the books of the assessee and a form 16A has also been issued by the assessee for TDS of Rs. 1,21,620/- to M/s. Aman Enterprises. As it is noted that payment of Rs. 11,80,780/- made to M/s. Aman Enterprises is not reflected in the interest account or in the Profit & Loss account, therefore, Assessing Officer made an a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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