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2016 (1) TMI 576 - ITAT KOLKATA

2016 (1) TMI 576 - ITAT KOLKATA - TMI - Addition u/s 69A - excess cash found during the Survey operations - whether the said excess cash was duly explained by late Shri Ramautar Prasad Verma and his son by filing proper cash-flow statements? - Held that:- Plea of the asessee is duly substantiated by the cash flow statement of Shri Arun Kumar Verma, assessee's son and personal cash book of the assessee. The fact that such an explanation was not given at the time of survey cannot be the basis for .....

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find the item-wise tally of the stock as per physical verification at the time of survey on the stock as per the stock register of the assessee. It is therefore not possible to come to a conclusion that the difference is only due to incorrect weighing of the items of jewellery. Therefore, confirm the order of CIT(A) in this regard. - Decided against assessee

Addition made out of payments of Commission - Held that:- The evidence on record in the form of bills raised by Shri Ashok Kr. G .....

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for examination. In such circumstances disallowance of commission was rightly made by the revenue authorities - Decided against assessee

Disallowance towards Travelling and Conveyance expenses and repairs and maintenance expenses - Held that:- The AO made the impugned disallowances on the ground that the same were supported by self made vouchers. Disallowance in question was a paltry sum compared to the expenditure claimed by the assessee. It is of the view that the disallowance is r .....

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the assessee reads as follows :- "2. On the facts and in the circumstances of the case, the Learned CIT(A) erred in confirming the addition of rs.58,598/- u/s 69A of the Income-tax Act, 1961, made on account of alleged excess cash found during the Survey operations in spite of the fact that the said excess cash was duly explained by late Shri Ramautar Prasad Verma and his son by filing proper cash-flow statements." 4. The assessee is an individual. He carried on business on trading in .....

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f the assessee regarding availability of cash in the hands of his son was duly substantiated by a cash flow chart. The assessee also explained that another sum of ₹ 20,000/- belonged to him and was brought from the house and kept in the business premises at the time of survey. The assessee's explanation was rejected for the reason that such an explanation was not given at the time of survey and the same was given only at the time of assessment proceedings. It is to be noted that the ab .....

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placed at page 31 of the assessee's paper book. The fact that such an explanation was not given at the time of survey cannot be the basis for rejecting the claim of the assessee. I accordingly direct the AO to delete the addition made in this regard. 6. Ground No.3 (a) and (b) raised by the assessee read as follows :- "3(a) On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming the addition of ₹ 1,29,662/- u/s69A of the Act, made on the alleged g .....

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extent of 4250.127 gms. The assessee explained that 4051.500 gms of gold was received from M/s.Emarald Jewellers, Coimbatore and that the normal practice in the trade was that the stock receipt from outside state is not entered in the stock register till it gets endorsed by the Sales tax authorities. The assessee thus explained that the aforesaid quantity of gold was not recorded in the stock register. With regard to the remaining gold 208.627 gms the assessee explained that the same is arising .....

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regard to 208.627 gms of jewellery and added the same to the total income of the assessee which resulted in an addition of ₹ 1,29,662/-This has been wrongly added at ₹ 1,58,000/- in the computation of the total income by the AO. 8. The CIT(A) also did not accept the plea of the assessee. Aggrieved by the order of CIT(A) the assessee is in appeal before the Tribunal. 9. I have heard the rival submissions. One plea of the assessee was that the difference being very minor should be igno .....

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items of jewellery. Therefore, I confirm the order of CIT(A) in this regard. Ground No.3(a) and (b) of the assessee is dismissed. 10. Ground No.4 raised by the assessee reads as follows :- "4. On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming the addition of ₹ 2,76,810/- made out of payments of Commission, simply by commenting that the recipients of commission had not been found at the given addresses and hence, the payments of commission were .....

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the aforesaid parties on the assessee bear PAN numbers and tax had been deducted at source at the time of payment of commission. The commission had been paid by cheques and therefore the assessee has proved the genuineness of the expenditure incurred by it. The assessee placed reliance on the decision of the Hon'ble Calcutta High Court in the case of Mather & Platt (India) Ltd. Vs CIT 168 ITR 493. In the aforesaid decision the Hon'ble Calcutta High Court held that merely because a pe .....

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