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Income Tax Officer Versus Sh. Rakesh Kumar Saini, Prop. M/s RK Industries

Non-deduction of TDS on freight payment - Held that:- As the appellant could not produce all cash vouchers as a result of which it is held that 20% of the total payment was in excess of ₹ 20,000/- to a single party. Thus, 20% of the total freight payment amounting to ₹ 71,218/- is disallowed as per provisions of Section 40(a)(ia) of the Income Tax Act

Non deduction of TDS on rental payment - Held that:- As payment was less than ₹ 1,20,OOO/- p.a. and thus TDS provisio .....

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per the sale register duly reconciled by the appellant, the gross sale for the period under consideration were ₹ 1,67,79,883/-. Out of these receipts, the appellant had also included receipt of ₹ 1,08,815/- from M/s Jindal Mectec and ₹ 16,759/- received from M/s Timplex Industries. Hence, there is no force in the contention of the AO, that these two amounts were not shown by the appellant in his return of income. Thus the addition made in assessment order is hereby deleted

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with the evidence regarding the source from which the money was received by his father. Considering all these evidences. Thus hold that the appellant has been able to prove the genuineness of transaction and the creditworthiness of the lender. Hence, the addition of ₹ 10 lacs made by the AO on account of capital introduced by the appellant is hereby deleted

Addition of unexplained addition to building account - Held that:- On a perusal of relevant supports the same were found t .....

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and is thus added to the income of the appellant. Thus the addition is limited to this amount

Addition on account of unexplained additions to Plant and Machinery - Held that:- During the course of appellate proceedings, the appellant gave detailed break-up of the said addition along with relevant bills/vouchers, which were found to be in order. The AO'S comments with regard to addition f the order have already been incorporated in his report while discussing addition made in Para 7 of .....

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and the circumstances of the case, the Ld. CIT(A) has erred in facts and in law by admitting the additional evidences during the appellate proceedings under Rule 46A / despite the facts that none of the conditions laid down in Rule 46A are applicable to the case. ii. The Ld. CIT(A) has erred in deleting addition of ₹ 2,84,784/- out of addition of Rs,3,56,002/- made by the AO on account of non deduction of TDS on freight payments, ignoring the fact that the assessee could not produce all ca .....

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he AO on account of non declaration of receipts in 1TR, when the same were not produced before the AO during the assessment proceedings even after affording the ample opportunities and accordingly deleting the additions made by the AO. v. The Ld. CIT(A) has erred in deleting the addition made by the AO on account of capital introduced of ₹ 10,00,000/- on the basis of additional evidences produced during the appellant stage when the assessee failed to prove the creditworthiness and genuinen .....

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the appellate stage. viii. That the appellant craves for the permission to add, delete or amend the grounds appeal before or at the time of hearing of appeal. 2. The brief facts of the case are that the Assessee filed return declaring income of ₹ 4,18,693/- on 30.9.2008. The case was processed u/s. 143(1) of the I.T. Act and subsequently the case was selected for scrutiny and accordingly, statutory Notices were issued and served upon the assessee. In response to the notices, Ld. AR of the .....

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s in dispute in favour of the assessee by partly allowing the appeal of the Assessee. 4. Aggrieved with the aforesaid finding of the Ld. CIT(A), Revenue is in appeal before the Tribunal. 5. At the time of hearing Ld. DR relied upon the order of the AO and reiterated the contentions raised by the Revenue in the grounds and requested that Appeal of the Revenue may be allowed. 6. In this case, Notice of hearing to the assessee was sent by the Registered AD post, in spite of the same, assessee, nor .....

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cords available with us, especially the impugned order. 8. Apropos issue related to admitting of additional evidences u/r 46A raised vide ground no. (i). We find that Ld. First Appellate Authority has elaborately discussed the issue in dispute by considering the submissions of the assessee and adjudicated the same vide para no. 3.2 to 3.4 at pages 4 to 5 in his impugned order. The said relevant paras of the impugned order are reproduced as under:- 3.2 I have considered the facts of the case toge .....

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y. These documents were given to him directly as a result of which the appellant coulcknot get acknowledgement regarding the same. The appellant in his strong words stated that the file was misplaced by the AO for which blame was put on the assessee. 3.3. In order to resolve the issue of admissibility of additional evidence, I perused the assessment records. As per the order sheet entries forming a part of the assessment record, the first hearing was conducted on 01.12.2010 on which Shri Dinesh .....

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ne order-sheet entry which appears on 28.12.2010 on which date, Shri Dinesh Kumar, the learned & counsel of the appellant was asked to submit 12 details, which included audit report of assessment years 2007-08 and 2008-09, purchase bill of vehicles, materials for building, plant and machinery, receipts in respect of payment of rent, confirmation regarding addition to capital, proof of deduction u/s 80L, housing loan certificate, secured loan proof, reasons for low GP, the non-deduction of ta .....

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Assessment order on 30.12.2010. The appellant was given only one day to provide voluminous details, which was almost impossible for him. In view of the inadequate time provided by the AO to the appellant for furnishing details during the course of assessment proceedings, as is evident from the assessment record, I hold that it would be in the interest of justice and fair play to admit the additional evidence filed during the course of appellate proceedings. Hence, the additional evidence given .....

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deletion of addition of ₹ 2,84,784/- out of addition of ₹ 3,56,002/- made by the AO on account of non-deduction of TDS on freight payment raised vide ground no. (ii) is concerned, we find that Ld. First Appellate Authority has elaborately discussed the issue in dispute by considering the submissions of the assessee and adjudicated the same vide para no. 6.3 to 6.4 at pages 6 to 7 in his impugned order. The said relevant paras of the impugned order are reproduced as under:- 6.3 Para 3 .....

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eement with Sh. Om Prakash at the time of appellate proceedings. As regards, rent agreement with other parties vis-a-vis Sh. Pawan Kumar and Sh. Mahesh Kumar, has not been furnished by the assessee neither at the time of assessment proceedings nor at the time of appellate proceedings. As regards, freight the assessee has not filed any ledger account so as to support his claim that the freight was paid to individual tempo or three wheeler in cash and payment to a single party did not exceed ͅ .....

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uchers, it is found that the appellant could not produce all cash vouchers as a result of which it is held that 20% of the total payment was in excess of ₹ 20,OOO/- to a single party. Thus, 20% of the total freight payment amounting to ₹ 71,218/- is disallowed as per provisions of Section 40(a)(ia) of the Income Tax Act. 9.1 After going through the aforesaid finding of the Ld. CIT(A) on the issue in dispute, we are of the view that the Ld. First Appellate Authority has passed a well .....

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he submissions of the assessee and adjudicated the same vide para no. 6.5 at page 7 in his impugned order. The said relevant paras of the impugned order are reproduced as under:- 6.5. As regards, non-deduction of TDS on rent payments, the appellant gave rent agreement in respect of Shri Om Prakash and rent receipt in respect of Shri Pawan Kumar and Shri Mahesh Kumar. In case of Shri Om Prakash, the agreement signed in 2005 showed a rental payment of ₹ 9500/- per month. It also provided for .....

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dition on account of non-deduction of TDS in respect of rental payment is restricted to the payments made to Shri Om Prakash. Hence, the addition made by the AO in Para 3 of the assessment order is partly allowed. 10.1 After going through the aforesaid finding of the Ld. CIT(A) on the issue in dispute, we are of the view that the Ld. First Appellate Authority has passed a well reasoned order on this issue which does not need any interfere on our part. Hence, we uphold the order of the Ld. CIT(A) .....

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he said relevant paras of the impugned order are reproduced as under:- 6.7.The addition in Para 5 of the order is on account of non-declaration of receipts of ₹ 16,759/- from M/s Timplex Industries and Rs.l,08,815/- from M/s Jindal Mectec. This was detected by the AO consequent upon the matching of receipts as per Form No. 26AS with the receipts shown by the appellant in his return of income. 6.8. During the course of appellate proceedings, the appellant gave a detailed paper book in which .....

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urn of income. Thus the addition made in Para 5 of the assessment order is hereby deleted. The appellant gets relief accordingly. 11.1 After going through the aforesaid finding of the Ld. CIT(A) on the issue in dispute, we are of the view that the Ld. First Appellate Authority has passed a well reasoned order on this issue which does not need any interfere on our part. Hence, we uphold the order of the Ld. CIT(A) on this issue and dismiss the ground no (iv) raised in the Revenue s Appeal. 12. Ap .....

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order are reproduced as under:- 6.9 The addition in Para 6 is in respect of ₹ 10 lacs received by the appellant from his father, Shri Ram Kishan Saini. This addition was made in view of the fact that the appellant failed to prove the genuineness of transaction and credit-worthiness of his father. During the course of appellate proceedings, the appellant gave additional evidence which was examined by the AO. The AO in his report dated 30.03.2012 submitted the following with regard to this a .....

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ments given by the appellant- were examined by the under-signed as well. The documents included an affidavit from the father of the appellant, namely, Shri Ram Kishan Saini as per which he gifted an amount of ₹ 10 lacs to his son-in-law and the appellant, Shri Rakesh Kumar Saini vide account payee cheque No. 00432 dated 23.03.2006 drawn on Indian Overseas Bank, Rewari. Shri Ram Kishan Saini, also stated in his affidavit that this amount was received by him on 24.09.2005, on account of sale .....

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ave a copy of his bank account as per which the amount of ₹ 10 lacs was debited to his account on 23.03.2006. This amount was received by the appellant in his bank account on 27.03.2006. As an evidence of the sale of land, the appellant gave a copy of the Sale Deed as per which the said land was sold on 14.11.2005. 6.11.1 have considered the facts of the case together with the remand report of the AO and the detailed submissions of the appellant together with the evidence filed by the lear .....

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the lender. Hence, the addition of ₹ 10 lacs made by the AO on account of capital introduced by the appellant is hereby deleted. 12.1 After going through the aforesaid finding of the Ld. CIT(A) on the issue in dispute, we are of the view that the Ld. First Appellate Authority has passed a well reasoned order on this issue which does not need any interfere on our part. Hence, we uphold the order of the Ld. CIT(A) on this issue and dismiss the ground no (v) raised in the Revenue s Appeal. 13 .....

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t paras of the impugned order are reproduced as under:- 6.12 The AO made an addition of ₹ 11,06,367/- in Para 7 of his order on account of addition made to buildings. During the course of appellate proceedings, the appellant gave details of the said additions along with relevant bills/vouchers. The AO on examination of the said details stated the following in his report dated 30.03.2012: The assessee has not filed any proof of sale of these assets neither at the time of assessment proceedi .....

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t supports given by the appellant to substantiate additions to building during the year under consideration was also examined by the under-signed. On a perusal of relevant supports the same were found to be in order. However, there was one major discrepancy noted on a perusal of relevant bills/vouchers. The discrepancy was in respect of a bill of M/s Gaurav Steels, which was for an amount of ₹ 48,947/- instead of ₹ 4,89,424/-. When asked to give an explanation of the difference betwe .....

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