TMI Blog2017 (3) TMI 800X X X X Extracts X X X X X X X X Extracts X X X X ..... nvoked the provisions of section 68 in the instant case and we hold that the additions made in this regard are hereby directed to be deleted - Decided in favour of assessee TDS u/s 194J - non deduction of tds on accounting charges - Held that:- We find lot of force in the argument advanced by the ld AR that the payment made for accounting charges does not fall under the ambit of ‘fee for professional services’ u/s 194J of the Act as the said person rendering accounting services does not possess any professional qualification for rendering the said accounting services. Accordingly, we direct the ld AO to delete the disallowance made in this regard u/s 40(a)(ia) of the Act. - Decided in favour of assessee - I.T.A Nos.1209 & 1235/Kol/2012 - - - Dated:- 8-3-2017 - Shri M. Balaganesh, AM and Shri Partha Sarathi Chaudhury, JM For The Appellant: Shri soumitra Choudhury, Advocate For The Respondent: None ORDER Per Shri M. Balaganesh, AM: Both these appeals by assessee are arising out of separate orders of CIT(A)-XXX, Kolkata vide Appeal No. 402/CIT(A)-XXX/Cir-48/2008-09 106/CIT(A)-XXX/Cir- 48/2009-10 dated 27.02.2012. Assessments were framed by DCIT, Circl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, not convinced the explanation proceeded to hold that the cash deposits in bank account were not properly explained and hence brought the same to tax as unexplained cash credit u/s 68 of the Act to the tune of ₹ 17,84,000/- . 2.2. Before the ld CITA, the assessee stated that the cash deposits are explained by cash withdrawals from the bank and out of cash flow statement of the assessee . Moreover, the copies of bank book, bank statements together with cash analysis statement were filed before the ld AO which had not been properly appreciated by the ld AO. It was also explained that the assessee in order to reflect huge banking turnover for the purpose of availing higher credit limits for the purpose of his business, had to resort to this circulation transactions in the bank accounts by frequent withdrawals and frequent deposit of cash in 3 ITA Nos. 1209 1235 of 2012 Goutam Das, AY 2006-07 2007-08 bank account. This was done only to achieve a targeted credit turnover to uplift the account s status to get various financial assistances from the bank. Most of the times, cash was withdrawn the previous day and deposited the next day. Sometimes cash was withdrawn from one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 223 ITR 544 (Gau) Hon ble Bombay High Court in the case of CIT vs Bhaichand H Gandhi reported in (1983) 141 ITR 67 (Bom) Hon ble Madras High Court in the case of CIT vs Taj Borewells reported in (2008) 202 Taxman 413 (Mad). Apart from the above, the assessee reiterated the submissions made before the ld AO that the entire cash deposits are met out of previous cash withdrawals and available surplus cash in the business of the assessee and that the entire transactions are duly reflected in the balance sheet of the assessee. It was stated that the ld AO had not properly appreciated the cash flow statement furnished before him. The ld CITA observed that the tax auditor had stated that the books of accounts were maintained by the assessee in his tax audit report. But the said books of accounts were only not produced by the assessee before the ld AO. Accordingly he concluded that the assessee cannot claim that the entries were not there in his books of accounts and upheld the addition made by the ld AO. 2.4. Aggrieved, the assessee is in appeal before us on the following ground :- 2. That on facts and circumstances and legal position of the case the CIT(A) has er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esorted to circulation of cash transactions in various bank accounts of the assessee which are disclosed in the balance sheet. It is not in dispute that the entire bank accounts are duly disclosed by the assessee in his balance sheet comprising of both personal and business transactions. We have gone through all the bank statements together with the cash book and the cash flow statement clearly depicting the available cash balance on each day of deposit and we find that the assessee has got sufficient sources for cash deposits made in the bank accounts and no part of the same is unexplained. The cash flow statement is admittedly prepared taking assistance from the bank statements. It is not the case of the revenue that the cash withdrawals made by the assessee were utilized for some other purpose so as to prove that the said cash is not available to meet the subsequent deposits. We find that the explanation offered by the assessee that he had resorted to circulation in bank transactions only to reflect the higher banking turnover in order to avail higher credit facilities from banks is acceptable. In any case, there is no element of income involved therein as the cash deposits are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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