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2015 (3) TMI 1015 - ITAT DELHI

2015 (3) TMI 1015 - ITAT DELHI - TMI - Unsecured loans - CIT(A) deleted the addition - Held that:- The details of parties from whom the assessee received loans on behalf of Mudra Exports and paid the same to its creditors is available in the paper book. It is apparent from such details that all the amounts were received by means of demand drafts which were directly issued in favour of the assessee’s creditors. Such amounts received by the assessee from the debtors of Mudra Exports are duly recor .....

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.2007 can be received by the assessee before that date on 30.3.2007 and recorded with the narration of ‘the amount received and paid to Railway.’ One can understand if the amount is paid by A to B and the A records transaction in his books of account on the date of making of draft or issuance of cheque and B records the same in his books of account later on at the time of its actual receipt. However, the position in the instant case is converse inasmuch as the payer is claiming to have made paym .....

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ded in favour of revenue for statistical purposes.

For receipts from Mudra Ceramics Pvt. Ltd.Though apparently there is no separate entry for any loan and advance of ₹ 15 lac appearing on the asset side of the balance sheet of the assessee, but the ld. AR contended that this amount may have been included in the list of Loans and advances. It was attempted to show that this payment is a part of the several transactions undertaken by the assessee with this party. Unless the positi .....

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favour of revenue for statistical purposes.

For receipts from Anshu Hospital. ld. CIT(A) deleted this addition by accepting the assessee’s contention that the same was in the nature of loan advanced and not loan taken. This amount of ₹ 20 lac claimed to have been advanced to Anshu Hospital is not directly traceable from the face of the balance sheet. The ld. AR gave the same explanation as given for Mudra Ceramics above. Following the view taken hereinabove in the context of Mu .....

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duction of tax at source. As regards the payment for a sum of ₹ 3,14,414/- paid to Kolkata Port Trust, the same was towards ‘freight for carriage of goods by Railways.’ The assessee filed a copy of bill showing that the payment was made to the Railway Division of the Port Trust for freight charges relating to hired wagons. Since this payment is also towards carriage of goods by Railways, it would not attract section 194C. As regards the remaining amount disallowed by the AO, the assessee f .....

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undantly apparent that the assessee deducted tax at source from the freight payments wherever it was required under law. In view of this position, we uphold the impugned order deleting the disallowance made u/s 40(a)(ia) of the Act. - Decided in favour of assessee.

Disallowance of service tax - assessee did not file proof of payment of service tax before filing the return - CIT(A) deleted the disallowance - Held that:- In the absence of any adverse comments made by the AO and the fact .....

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8.11.2010 in relation to the assessment year 2007-08. 2. The first ground is general which does not require any separate adjudication. 3. Ground no. 2 is against the deletion of addition of ₹ 5,66,44,000/- made by the Assessing Officer (AO) on account of unsecured loans. 4. Briefly stated, the facts of the case are that the assessee is engaged in the business of export of iron ore fines, steel pipes and skimmed milk powders, etc. The AO noticed from the details furnished by the assessee th .....

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confirming debit balance in its name at ₹ 3,15,14,000. The AO found the balance as not tallying inasmuch as the loan was received for a sum of ₹ 3.35 crore. On being called upon to furnish particulars in respect of all the four creditors, the assessee showed its inability to furnish any documents in respect of M/s Mudra Exports on the ground that they refused to give any such document. The AO issued notice u/s 133(6) to M/s Mudra Exports, but no compliance was made. In view of the f .....

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erial available on record, the ld. CIT(A) deleted the addition of ₹ 5,66,44,000/-. Here, it is pertinent to mention that the Revenue is not aggrieved against the admission of additional evidence in terms of Rule 46A inasmuch as there is no ground challenging the admission of additional evidence by the ld. CIT(A). The reason appears to be the ld. CIT(A) calling and the AO sending remand report on the merits of the additional evidence filed by the assessee. The Revenue, on this issue, is agg .....

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mount of loan or deposit taken by the assessee from Mudra Exports, by considering an Annexure to the tax audit report, a copy of which is available on page 201 of the paper book. The Annexure to the tax audit report showing receipt , inter alia, of ₹ 3,35,34,000/- also shows Repayment of loan to Mudra Exports to the tune of ₹ 20.20 lac. Thus, the balance after deduction of the amount of repayment from the amount of loan received comes to ₹ 3,15,14,000/-, being the same amount a .....

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nt given by this party in the certificate. 7.2. The position which, therefore, emerges is that Mudra Exports advanced loan to the assessee from its books of account which is evidenced from the copy of account of the assessee in their books of account. Once a person pays a loan from his regular books of account to another and the balance is shown in the balance sheet, there cannot be any question of doubting the genuineness of the credit, more so, when the said amount has been accepted as genuine .....

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; 3.35 crore, a sum of ₹ 2,38,34,000/- was directly advanced by this party by means of various cheques issued on different dates, the details of which are available on record. The remaining amount of ₹ 97 lac was obtained by the assessee indirectly from Mudra Exports by recovering the amounts from their debtors which amounts were directly paid to the creditors of the assessee. The details of parties from whom the assessee received loans on behalf of Mudra Exports and paid the same to .....

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udra Exports, we have no hesitation in upholding the impugned order deleting this addition. (ii) S.V. Liquor India Ltd. 8. The assessee showed a receipt of ₹ 1,96,10,000/- from S.V. Liquor India Ltd., in the same Annexure to its tax audit report, as the amount of loan or deposit taken or accepted. The AO picked up this amount from the said Annexure of the audit report. The next column in the Annexure shows the amount of repayment to M/s S.V. Liquor India Ltd., at ₹ 2.47 crore. Page n .....

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dia Ltd., on page 86 of the paper book, the assessee has drawn a reconciliation of the balance by showing a sum of ₹ 46,10,000/- as the amount debited by S.V. Liquor India Ltd., in next year. In so far as the first three entries of ₹ 50 lac each are concerned, we find that these have emanated from the books of account of S.V. Liquor India Ltd., and have gone into the assessee s books of account representing a sum of ₹ 1.50 crore received by the assessee from this company by mea .....

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Apart from the above three amounts of ₹ 50 lac each, it has been mentioned that a sum of ₹ 46,10,000/- was paid vide cheque No.779195 dated 4.4.2007. The position which, therefore, results is that the assessee is claiming to have received a sum of ₹ 46.10 lac from S.V. Liquor on 30.3.2007, where this party is showing to have paid this sum to the assessee in the next financial year on 4.4.2007. We are unable to understand as to how the payment of ₹ 46.10 lac made by S.V. L .....

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payer is claiming to have made payment on 4.4.2007 and payee, that is the assessee, is showing to have received this amount on 30.3.2007. Under such circumstances, we cannot accept the genuineness of loan transaction to the tune of ₹ 46.10 lac unless the facts are properly considered and appreciated. Overturning the impugned order on this score, we send the matter back to the file of AO for verifying the genuineness of credit to the extent of ₹ 46.10 lac claimed to have been receive .....

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proceedings before us, we required the AR to show the advancing of loan of ₹ 15 lac to Mudra Ceramics Pvt. Ltd., from the balance sheet of the assessee. Though apparently there is no separate entry for any loan and advance of ₹ 15 lac appearing on the asset side of the balance sheet of the assessee, but the ld. AR contended that this amount may have been included in the list of Loans and advances. It was attempted to show that this payment is a part of the several transactions under .....

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file of AO for examining this issue afresh and, thereafter, taking an appropriate decision as per law and after allowing a reasonable opportunity of being heard to the assessee. iv) Anshu Hospital. 10. The AO made addition of ₹ 20 lac by adopting the figure from the same Annexure of the tax audit report which mentions it as the amount of loan or deposit taken or accepted by the assessee from Anshu Hospital. Here again, the ld. CIT(A) deleted this addition by accepting the assessee s conte .....

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11.1. Ground No.3 is against the deletion of addition of ₹ 15,80,000/- made by the AO on account of pending share application money. From the balance sheet furnished by the assessee, the AO observed that share application money to the tune of ₹ 15.80 lac was pending allotment as on 31.3.2006. It was, therefore, opined that this was a case of cessation of liability for which addition of ₹ 15.80 lac was made. The ld. CIT(A) ordered for the deletion of addition. 11.2. Having hear .....

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for which it incurred loss or expenditure etc., earlier. To put it simply, section 41(1) can be attracted only when a trading liability for which deduction was claimed earlier, ceases to be payable. Obviously, receipt of share application money can, by no standard, be construed as a trading liability for which the assessee could have been allowed deduction in the past and its later cessation has resulted into income. As such, the application of section 41(1) is ruled out. 11.3. It is noticeable .....

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Act because there is no fresh credit appearing on the books of the assessee during the year on this account, which is a condition precedent for attracting the mischief of this section. It is further a matter of record that in the subsequent year the shares were issued against the said share application money of ₹ 15.80 lac. We, therefore, uphold the impugned order on this issue. This ground fails. 12.1. Ground no. 4 is against the deletion of disallowance of freight and transportation cha .....

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red total freight and transportation charges to the tune of ₹ 3,77,09,424/-, the details of which is available on page 126 of the paper book. It can be seen that the payment to Lakshmi and Jyothi Transport is only to the extent of ₹ 7 lac and odd, while a sum of ₹ 3,16,50,188/- was paid to Indian Railways and a further sum of ₹ 3,14,414/- was paid to Kolkata Port Trust towards freight for carriage of goods by Railways. Section 194C provides for making deduction of tax at .....

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t the carriage of goods or passengers by Railways. In other words, any payment made for carriage of goods or passengers through Railways cannot be covered u/s 194C of the Act. In so far as payment of ₹ 3,16,50,188/- is concerned, it was directly made by the assessee to Railways for which there can be no default for non-deduction of tax at source. As regards the payment for a sum of ₹ 3,14,414/- paid to Kolkata Port Trust, the same was towards freight for carriage of goods by Railways .....

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