TaxTMI 
TaxTMI 
2018 (7) TMI 943
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....iness of logistics and warehousing and had filed its return of income for the Asst Year 2012-13 on 23.8.2012 declaring total income of Rs. 1,67,79,745/-. Later this return was revised on 17.12.2012 declaring total income of Rs. 1,79,79,750/-. The ld AO on perusal of the profit and loss account noticed that assessee company had claimed expenditure on transportation and handling charges amounting to Rs. 5,57,26,122/-. The ld AO asked the assessee to furnish the details of the same together with compliance of TDS provisions thereon. The assessee replied before the ld AO vide its letter dated 16.3.2013 as under:- Paid with deduction of TDS as per TDS return - Rs. 83,27,377/- Transportation payment to various transporters for Hire of vehicle and including transporter having PAN and reimbursement of fuel charges - Rs. 4,73,98,745/- TOTAL - Rs. 5,57,26,122/- 2.2. The ld AO observed that even though the assessee had obtained the PAN from the transporters in terms of section 194C(6) of the Act, it is bound to submit the same before the prescribed income tax authority in terms of section 194C(7) of the Act within the prescribed time which was not done in the instant c....
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....hin the prescribed time. In our considered opinion, the provisions of section 194C(6) and 194C(7) of the Act are to be read together in order to serve the purpose of the legislature. We find that the purpose behind the provisions of section 194C(7) of the Act is to enable the revenue to take corresponding action with the payees (i.e transporters) and make verification as to whether they had filed their returns in the first instance and if so, whether they had duly disclosed the subject mentioned transactions in their returns . This verification would be part and parcel of the action plan of the CBDT to track the non-filers of income tax returns or assessees trying to conceal their income for a particular year. We cannot make the purpose of these legislative provisions otiose. We find that there is no evidence on record to prove as to on which date the assessee herein had submitted the PAN before the competent authority as mandated in section 194C(7) of the Act, which aspect requires factual verification by the ld AO. It is also not clear from the records as to whether the assessee had indeed submitted the PAN of transporters before the competent authority as prescribed in section 1....
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....as been very selective and has picked up only cases with higher 26AS figures, at the same time , ignoring much higher figures of returned turnover against many other parties. No reason has been given by the ld AO as to why he ignored cases of much higher turnovers than 26AS figures when he picked up for addition 26AS figures in cases it was higher than the offered figures. The ld CITA observed that figures mentioned in Form 26AS were at variance with figures mentioned in profit and loss account in respect of most of the parties. Since the overall turnover disclosed by the assessee was more than what is reflected in 26AS, he deleted the addition made in the sum of Rs. 90,10,087/-. 3.3. Aggrieved, the revenue is in appeal before us. 3.4. We have heard the rival submissions. The ld DR vehemently relied on the order of the ld AO. We find that no effort has been made by the assessee to reconcile the basic difference in turnover between what is reported in its ledgers and that reported in Form 26AS. It is the duty of the assessee to reconcile the turnover in respect of each party vis a vis Form 26AS and give proper explanation thereon. But we find that the ld AO had done cherry picking....
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.... service of making fresh investments in the assessee company and also produce other investors / shareholders to explain their investments in the assessee company. Summons u/s 131 of the Act remained uncomplied with until 9.3.2015 . Later when showcaused in this regard for drawing adverse inference, Shri Tutul Chowdhury appeared on 19.3.2015 and also produced Shri Bipul Chowdhury and Smt Anushree Chowdhury (other shareholders) and submitted copy of their income tax returns, balance sheets and bank statements for Asst Year 2012-13. The ld AO also recorded individual statements from them on oath u/s 131 of the Act and found that these shareholders had made investments in the assessee company towards share capital and share premium both in cash as well as in cheque and also had unsecured loans outstanding in their personal balance sheets as under:- Name Total share capital/premium invested during the year By cheque By cash Unsecured loans in personal Balance Sheet Tutul Chowdhury 40,00,000 14,15,000 25,85,000 2,05,52,056 Bipul Chowdhury 30,00,000 4,50,000 25,50,000 44,25,000 Anushree Chowdhury 30,00,000 9,50,000 20,50,000 65,97,000 4.3. When all these sharehol....
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....o whether the ld CITA was justified in deleting the addition made towards service tax u/s 43B of the Act in the facts and circumstances of the case. 5.1. The brief facts of this issue are that the ld AO noticed that the service tax outstanding as on 313.2012 in the sum of Rs. 23,23,380/- was actually paid on 28.3.2013 i.e after the due date of filing the return u/s 139(1) of the Act. The ld AO observed that when assessee was show caused in this regard as to why the same should not be disallowed u/s 43B of the Act, the assessee accepted for the disallowance . Accordingly the ld AO added the sum of Rs. 23,23,380/- to the total income of the assessee. 5.2. Before the ld CITA, the assessee stated that it had not claimed any deduction towards service tax and hence the provisions of section 43B of the Act cannot be made applicable at all in the first instance. It explained that service tax is to be paid when collected from the sundry debtors on whom the bills were raised. The amount was realized from the sundry debtors in the next year and accordingly the service tax portion thereon was also paid in the next year. The assessee placed reliance on the decision of the Hon'ble Bombay High ....