TMI Blog2018 (12) TMI 1503X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has successfully reconciled the impugned difference emanating for the sole reason of non-recognition of income in the impugned assessment year. The Revenue fails to dispute all these clinching reconciliation details. - Decided against revenue - ITA No.1953/Kol/2016 And C.O. No.76/Kol/2016 - - - Dated:- 30-11-2018 - Shri S.S.Godara, Judicial Member And Dr. A.L. Saini, Accountant Member For The Appellant : Shri Sandeep Lakra, Addl. CIT-SR-DR For The Respondent : None ORDER PER S.S.Godara, Judicial Member:- This Revenue s appeal and assessee s cross objection for assessment year 2011-12 arise from Commissioner of Income Tax (Appeals)-8 Kolkata s order dated 12.08.2016, passed in case No. CIT(A)Kolkata-8/100180/2014- 15, in proceedings u/s. 143(3) of the Income Tax Act, 1961; in short the Act . Heard Learned CIT-DR. Case file perused. 2. The Revenue s former substantive ground pleads that CIT(A) has erred in law as well as on facts in reversing the Assessing Officer s action disallowing assessee s salary expense claimed of ₹3,16,72,524/- as bogus in made in assessment order as reversed in lower appellate proceedings. The CIT(A) s detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as bogus salary expenses claimed by the assessee added to his total income. [To add: ₹ 3,16,72,524/-] 5.2 Ld. AR s explanation: Ground No.1(a): Disallowance of Salary ₹ 3,16,72,524/- The addition made on account of salary and wages, alleging to be bogus, is totally based on wrong documents (illustrative entries made during training of account which is not complete) and on wrong assumptions. Learned AO has also not considered nature of my business which is labour oriented, wages paid which can be worked out and cross checked with documents showing payment of contributions to employees PF and ESI for employees, past precedence and ratio of expenses on account of salary and wages to gross revenue. Page 17 of the Paper Book contains a statement showing the last three(3) financial year s comparison of salary with the service income of the assessee. Thus the addition is likely to be deleted in appeal. The audited P L Account and Balance sheet for the previous year ended 31.03.2011 substitutes any provisional or illustrative P L account which was obtained by the AO during survey on 08.03.2011, which was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was finalising the survey report, he would have mentioned the finding and aberrations, if any, notice during the survey. But this is not the case here for the DCIT AO has not referred to any statement, confrontation, tangible material except for the computer print-out, which is but jut a mechanical print-out. The computer print-out is just print-out of the postings that had been done so far, it is not the complete posing of all the transactions so far. 5.3.2 The said computer print-out is hereunder: RITU Enterprise A 118 Lake Gardens Calcutta 700045 Profit Loss A/c 1-Apr-2010 to 31 Mar-2011 Particulars 1 - Apr 2010 to 31 - Mar - 2011 Particulars 1-Apr-2010 to 31-Mar Direct expenses 1,34,29,37.75 Sales Accounts MAIANTENANCE CHARGES 4,68,00,367.00 CLEAANING MATEIRIALS 1,68,684.00 4,68,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ELECTRONICS SGOODS 1,650.00 ENTERTAINMENKT EXPENSES 85,395.75 INSURANCE 2,23,965.00 LAUNDRY CHARGES 6,827.00 MEDICAL EXPENSE 9,787.00 OFFICE EXPENSES 6,294.00 POSTAGE 7 TELEGRAM EXPENSES 3,615.00 PRINITING STATIONERIES 56,782.50 REPAIRING CHARGES 57,889.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 102010120982000 48,122 6.Kiran Roy WB34783/475 4110007240 0102010121033000 47,113 7.Manik Majumdar WB34783/837 4112540018 0102010120951000 12,459 8. Nimai Baidya WB34783/1023 4112695156 0102010120906 42,941 9. Nirmal Roy WB34783/1142 4112814091 0102010121002000 48,865 10 Rekha Samaddar WB34783/1143 4105007654 0102010121019000 44,046 11. Sanjay Hazra WB34783/1070 4112708314 0102010120920000 41,826 12.Shyam Ch. Karmakar WB34783/1141 4112811992 0102010120999000 46,914 13. Sumitra Mistry WB34783/150 4110002265 0102010121040000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... WB34783/1038 4112700676 0102010124478 44,637 31. GoutamMaity WB34783/473 4112522439 0102010124461 47,865 32. Jayraj Joyswal WB34783/473 4112522436 0102010124454 40,769 33. Md. Isha WB34783/561 4112540022 0102010124423 36,764 34. Rabi Das WB34783/147 4111045073 0102010124430 43,518 35. Rabi Prasad Mallick WB34783/1022 4112697802 010210124409 43,325 36. Rahat Hussain WB34783/827 4112651593 0102010124713 34,313 37. Rajesh Mahato (W) WB34783/263 4111049819 0102010124393 48,477 38. Ratan Maity WB34783/1049 4112704 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 55. Khokan Haldar (B) WB34783/799 4112650619 0102010124447 41,959 56. Asit Kr. Das WB34783/862 4112664439 16,121 Bejoy Dey WB34783/1293 4113199418 0102010125062 0 Tapan Mridha WB34783/1009 4112695154 0102010125048 3,739 Jiban Paul WB34783/1027 4112697800 0102010125024 3,940 Bijendra Paul WB34783/852 4112650623 0102010124956 0 Ajoy Das WB34783/1240 4113189609 0102010125116 0 Prasenjit Gupta WB34783/1151 4112814090 0102010125000 1,589 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 783/502 4112540007 0 1,539 Manas hazra WB34783/188 4111040379 2,823 1,540 Jayanta Bhahma WB34783/966 4112668123 0 1,541 Pinaki Bhadra WB34783/1173 4112816329 0 1,542 Raju Majhi WB34783/985 4112668128 3,166 1,543 Sanjoy Biswas WB34783/969 4112668117 2,962 1,544 Biplab Mondal WB34783/1139 4112816316 0 1,545 Anirudha Haldar WB34783/1135 4112811995 2,763 1,546 Bikash Haldar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139538 432627 191304 104240 JUNE 1117844 63041 655513 139469 453447 193362 99535 JULY 1030956 60871 694438 139254 46698 193241 162661 AUG 1056838 58133 697934 139779 453978 207644 100036 SEPT 1060991 62217 674159 160278 467115 198477 101703 OCT 988320 122210 692837 289487 403866 209250 100090 NOV 1038204 60553 663310 23036 476505 204468 99823 DEC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4290 7409 5419 6194 14651 2852862 2826497 9172 8400 4934 7452 13094 3408856 8448 6867 8796 5787 11142 9539 3581422 8084 3846 8318 5806 11129 12591 3781725 55472 10713 57262 55439 50271 74090 49875 27000 3781725 INITIATIV INFINITY LOURDES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 74090 49875 27000 3781725 5.3.4 What is also relevant to look at is the comparative profit percentage of past AYs. Last three (3) financial years comparison of salary with the service income Particulars AY 2009-10 AY 2010-11 AY 2011-12 A Service Income (Total) 40,669.630 46,348,344 52,979,39 Salary wages 28,149,604 31,864,408 37,589,900 Salary-uncovered staff 1,246,800 1,211,614 1,510,320 Salary-office staff 106,400 110,900 B. Total salary wages 29,396,404 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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