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2016 (5) TMI 266 - ITAT DELHI

2016 (5) TMI 266 - ITAT DELHI - TMI - Bogus purchases - Held that:- AO made addition solely on the basis of assessment order of another company M/s Nath International.AR also submitted that entire stock registers along with stock registers of M/s Nath International were also physically produced before the AO. On the basis of above stock registers it is proved that the assessee had sufficient stock of ready fabric which was sold to the assessee firm. - Decided in favour of assessee

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ddition - Held that:- his issue of deductibility of tax at source on export commission is squarely covered by the CBDT Circular No. 786 dated 7.2.2000 and also the decision of the Hon'ble Supreme Court in the case of Toshoku Ltd [1980 (8) TMI 2 - SUPREME Court ] wherein held commission amounts which were earned by the non-resident assessees for services rendered outside India cannot, therefore, be deemed to be incomes which have either accrued or arisen in India, hence no TDS. Therefore, without .....

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We find force in the submission of the ld. AR that if the AO had properly examined the vouchers, he would have found that they payments were actually for purchase of raw material and not for job work and subsequently he would not have proceeded to disallowed the same u/s 40(a)(ia) of the Act by holding that no tax had been deducted. The ld. CIT(A) was quite justified in deleting the addition which is not sustainable as the payments were made for purchase of material and not for job work which t .....

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iabad, dated 29/11/2010 in first appeal No. 119/2008-09/GZB-Noida for A.Y. 2006-07. 2. The grounds raised by the assessee read as under: 1. That the Ld. CIT(A) has erred in law on facts by allowing relief of ₹ 42,35,250/- to the assessee on account of Bogus purchases from M/s Nath International, without appreciating the facts mentioned in the assessment order. 2. That the Ld. CIT(A) has erred in law and on facts by allowing relief of ₹ 91,044/- to the assessee on account of excess cl .....

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ned in the assessment order. 5. That the Ld. CIT(A) has erred in law and on facts by allowing Relief of ₹ 10,71,095/- to the assessee on account of disallowance u/s 40(a)(ia) without appreciating the facts mentioned in the assessment order. 6. That the order of the Ld. CIT(A) being erroneous in law and on the facts deserves to be set-aside and the order of the AO be restored. 3. Briefly stated, the facts giving rise to this appeal are that the assessee is a partnership firm having three pa .....

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,43,660/-. Ground No. 1 4. Facts, in brief, are that the assessee purchased stock of ready fabric amounting to ₹ 42,35,250/- from M/s nath International, a sister concern of the assessee. During the course of assessment proceedings, the AO observed that the issue of stock of transfer was exclusively examine by her in the assessment order of the said partnership firm M/s Nath International for the A.Y 2006-07. Following the view taken in that year, the AO was of the view that M/s Nath Inter .....

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ually available with Nath International out of which 94,130 meters of stock was sold to the assessee-firm. The ld. CIT(A) further categorically held that the finding of the AO that no such stock was available with the said firm was factually incorrect. Now the Revenue is in appeal before the Tribunal against the impugned order of the ld. CIT(A). 4. We have heard the rival submissions and have perused the relevant material on record. The ld. DR supporting the action of the AO contended that the l .....

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sessee had sufficient stock of ready fabric which was sold to the assessee firm. 6. On careful consideration of the above rival submissions, we find that on similar facts and circumstances in the case of M/s Narayana International ITA No. 859/Del/2011 vide para 11 order dated 31/03/2016, we have held this issue to be in favour of the assessee as under: 11. In the light of the above, when we analyse the facts of the present case and conclusion of the ld. CIT(A), then we are inclined to hold that .....

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ew of the above facts noted by the ld. CIT(A) the addition made by the AO cannot be held as sustainable and the first appellate authority rightly added the same. Hence we agree with the explanation tendered by the ld. AR and consequently concur with the conclusion arrived at by the ld. CIT(A). Accordingly, we uphold the impugned order of the ld. CIT(A) on this count. Ground No. 2 of the Revenue being devoid of merits is dismissed. Since the facts and circumstances of the case are exactly same an .....

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erved that there were certain discrepancies as per the copy of account in the books of M/s S.M. Creations and as per copy of account of S.M. Creations in the books of the assessee and hence made the addition of ₹ 91,044/- as excess expenditure claimed by the assessee. Aggrieved, when the assessee went in appeal before the first appellate authority, he directed the AO to delete the addition. Now the aggrieved Revenue is in appeal before the Tribunal against the action of the ld. CIT(A), 9. .....

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t a cheque of ₹ 1 lakh dated 10.2.20106 was cancelled and was rightly appearing in the credit side of the ledger. The AO wrongly deducted ₹ 32,528/- instead of ₹ 1,23,572/- as debit note against quilting expenses. The ld. CIT(A) was right in deleting the addition by holding that the assessee had fully explained the differences between the statement of account of the assessee and copy of ledger account in the books of the assessee. The ld. DR has not brought on record anything c .....

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lar No. 786 dated 7.2.2000 issued by the CBDT and decision of the Hon'ble Supreme Court in the case of CIT Vs. Toshoku Ltd [1980] reported at 125 ITR 525, deleted the addition made by the AO. 11. We have heard the arguments of both the sides and carefully perused the relevant material placed on record before us. We find that this issue of deductibility of tax at source on export commission is squarely covered by the CBDT Circular No. 786 dated 7.2.2000 and also the decision of the Hon'bl .....

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29,257/- being 20% of total expenditure of ₹ 1,45,786/-. When the assessee went in appeal before the ld. CIT(A), he got relief. Aggrieved, against this relief granted by the ld. CIT(A) to the assessee, the revenue is in appeal before this Tribunal. 13. We have heard the arguments of both the sides and carefully perused the relevant material placed on record before us. We find that the ld. CIT(A) has given a categorical finding that the AO had wrongly applied the provisions of section 40A( .....

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