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Ram Kishan Versus Income Tax Officer, Bundi. and Vica-Versa

Accrual of income - Addition on account of undisclosed transportation receipts - hiring v/s ownership - Held that:- The balance sheet of the assessee shows that the assessee has no fixed assets in the form of trucks. Therefore, the contention of the assessee seems to be correct whereby he has submitted that he has been hiring the trucks from the truck operators/truck owners and providing them on rent to the company namely Ruchi Soya. The accounts of the assessee have duly been examined and it re .....

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er is directed to calculate the receipt of the assessee @ ₹ 500/- per builty for the trucks supplied to Ruchi Soya Industries. We hereby clarify that the assessee shall not be entitled to any deduction on account of brokerage, commission, telephone expenses, employees expenses or any other expenses whatsoever against the income so calculated by the ld Assessing Officer. The assessing officer is further directed to give the benefit of any payment made by the assessee (one during the proof o .....

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tive grounds of assessee as well as revenue s appeals are reproduced as under:- Grounds of assessee s appeal:- 1.1 The very action taken u/s 147 r/w 148 is bad in law without jurisdiction and being void ab-initio, the same may kindly be quashed. Consequently the impugned assessment framed u/s 144/ 148 dated 31.12.2007 may also kindly be quashed. 1.2 The impugned order u/s 144/ 148 r.w.s 147 dated 23.12.2011 is bad in law and on facts of the case, for want of jurisdiction and various other reason .....

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e in charging of interest u/s 234A &B and 244A as consequential in nature. The appellant totally denies it liability of charging of any such interest. Hence the interest so charged, being contrary to the provisions of law and facts, may kindly be deleted in full. Grounds of revenue s appeal:- On the facts and in the circumstances of the case the Id. CIT(A), Kota has erred in :- (i) deleting addition of ₹ 14,37,582/- out of total addition made at ₹ 26,09,706/- on account of undisc .....

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pt of the assessee comes at ₹ 2,88,65,763/- (2,62,56,057/- + 26,09,706/-) whereas the assessee had shown total transportation receipts at ₹ 2,62,56,057/- in his P&L account. Thus, the assessee had not shown transportation receipts amounting to ₹ 26,09,706/- in his return of income for the year under consideration. Therefore, it shows that income of ₹ 26,09,706/- had escaped assessment. The ld Assessing Officer issued a notice u/s 148 on 23-9- 2010, but no compliance w .....

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books of account, cash book and ledger. The ld Assessing Officer further observed that during the year under consideration, the assessee has shown gross receipt of ₹ 2,62,56,057/- in his P&L account but on verifying the TDS certificates submitted alongwith the return and form 26AS generated from the systems, it was found that gross receipt of the assessee comes at ₹ 2,88,65,763/- for the year under consideration. The details of the parties from whom the transportation receipts o .....

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order dated 23-12-2011. The ITO did not furnish details of total receipts of ₹ 28865763/- as per 26AS generated from the system, but supplied the statement of "DIFFERENCE SHEET" of 25 parties involving amount of ₹ 2609706/-. In regard to the alleged difference, an explanation was furnished saying that receipts in Respect of TDS certificate with amount of ₹ 1554400/- pertained to the earlier assessment year 2008-09 but were inadvertently wrongly attached with the retu .....

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ly allowed the appeal by observing as under:- The submission of the assessee has been considered carefully but not found convincing. The submissions of the AR of the assessee, that by clerical mistake our client s employee had wrongly enclosed TDS certificates with I.T. return, related to last A. Yr. for ₹ 1554400/-(TDS ₹ 32986/-) is an afterthought. There is no supporting documentary evidence, furnished by the assessee which /justify that the assessee included these receipts in the .....

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opy of accounts of the parties for the period 01/04/2007 to 31/03/2008 in which transportation receipt & TDS has been shown and has stated that these receipts have been taken by him in A. Y. 2008-09 and TDS were also claimed in A. Y. 2008-09 but due to clerical mistake the TDS certificates were wrongly attached with the return of income for A. Y. 2009-10. The AR of the assessee has also filed copy of accounts of the 258 parties, form which transportation receipts were not found to be include .....

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the assessee has claimed transportation receipt in A. Y. 2008-09 & 2009-10. (ii) There is no supporting documentary evidences were produced by the assessee which proved that the submission of the assessee is correct. (iii) The assessee has stated that by clerical mistake TDS certificates pertains to A. Y. 2008-09 were attached with return of income for A. Y. 2009-10 is not correct. If it is correct, the TDS amount so claimed by the assessee was correct. If it is correct, the TDS amount so c .....

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7; 26,09,706/- of the above mentioned 25 parties in the transportation receipt shown in A. Y. 2009-10 and for which no justification/explanation was furnished by the assessee with supporting documentary evidence. I, therefore, make an addition of ₹ 26,09,706/- as unaccounted/undisclosed transportation receipt for the year under consideration and added the same to the total income of the assessee. On the other hand assessee claimed that all the receipts were duly accounted it was also claim .....

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ertificate. The difference related to this year was only ₹ 11,72,124/-. The assessee also claimed that only N. P. on undisclosed turnover should be added to the income of assessee. It was seen that before Assessing Officer the assessee claimed t hat entire receipt were included in the books, which leads to the presumption that entire expanses must have been claimed by assessee. I have gone through the reconciliation and it was seen that out of difference of ₹ 11,72,124/- a sum of  .....

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ing Officer is directed to delete balance addition of ₹ 14,37,582/-. 4. Now both are in appeals before us. The ld AR of the assessee has submitted that the assessee maintained regular computerized Books of accounts in the nature of cash book and ledger and the same were duly audited by the Chartered Accounted as per his report dated 29-9-2009. The assessee has maintained all the vouchers of the expenditure incurred during the course of business carried on. While submitting the return for t .....

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f ₹ 25422166/- as shown in form No. 26AS generated from NSDL website several requests made to make available complete list of receipts of ₹ 28865763/- did not elicit any response from the ITO. The list of transportation receipts of ₹ 2609706/- termed as "Difference sheet" of 25 persons, and which according to him were undisclosed, were properly explained as being ₹ 1554440/- related to assessment year 2008-09 and balance duly accounted for in a. year 2009-10) an .....

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but wrongly included: 1. Sita Ram Mangal Prop. Umang Stone International ₹ 1054246/- 2. Shri Ram Cattle Feed ₹ 303000/- 3. Hygine Feeds ₹ 41899/- 4. United Export ₹ 129240/- 5. United Export ₹ 26050/- Total ₹ 1554400/- The balance of ₹ 1172218/- related to the assessment year 2009-10 . It is submitted that transportation receipts from Ruchi Soya were of ₹ 2257218/- out of which receipts of ₹ 1112701/- were accounted for in the books and the .....

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t, difference of ₹ 1172218/- was noticed in the a/c of Ruchi Soya Ltd. for which our submission before the Id. CIT(A) was that only the profit should be added but he did not accept our contention and confirmed the addition of ₹ 1172418/- which is not justified. The assessee does not own any of the vehicle of his own. He arranges the Trucks from the Truck Union and the market. Therefore, the transportation receipts directly go to the owners of the Trucks and not to the assessee and th .....

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on the following case laws:- (i) CIT v/s President Industries (158) CTR 372 (Guj. 2002) - (ii) CIT v/s Balchand Ajit Kumar, (186 CTR 419 ) (2004) (M.P.) (iii) Manmohan Sodani v/s CIT 304 ITR 52 (2008) (M.P.) He further submitted that the Revenue has in ground No. 2 challenged the order of the CIT(A) that he accepted the undisclosed receipts of ₹ 1554440/- related to a. year 2008-09 without giving opportunity to the A.O. under Rule 46A of the I.T. Rules, 1962. In so far as this ground is co .....

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cept the same but the CIT(A) has accepted as correct, after proper appraisal of the facts. A copy of order u/s 154 passed by the A.O. for the assessment year 2008-09 agitating the addition of ₹ 1554440/- is enclosed which clearly shows that the amount related to a. year 2008- 09. In view of this the 2nd ground of appeal by the department is devoid of any substance and deserves to be rejected. Therefore, he prayed to dismiss the revenue s appeal and appeal of the assessee may kindly be allo .....

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the company namely Ruchi Soya. The accounts of the assessee have duly been examined and it reveals that neither the maintenance nor the other charges for running of the trucks have been debited to the accounts of the assessee. In our view, the addition sustained by the ld CIT(A) are required to be deleted as the amount were received by the assessee on behalf of the truck owners and therefore the entire amount cannot be treat as income of the assessee. However, since the assessee is claiming com .....

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