TMI Blog2015 (5) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A). - Decided against revenue. Addition u/s 40(a)(ia) - TDS defaults - assessee not deposited the TDS before the due date as was prescribed u/s 40(a)(ia) - as per assessee he deposited the TDS before the due date of filing of return - Held that:- Since the challans representing the deposit of TDS were not produced before the lower authorities, hence, subject to the verification of the deposit of the TDS by the AO, we direct that the assessee's claim be allowed towards payment to the extent it exhibits payment of corresponding TDS by the due date of furnishing the return for the relevant year. So far the second part of the ground in relation to admission of additional evidence is concerned, since we have restored the matter to the file of the AO, this issue is disposed of accordingly with a direction that the assessee will be given proper opportunity by the AO to show/furnish evidence that the TDS was deposited before due date of filing and thereafter the AO to decide the issue in accordance with our above observations. Addition on account of foreign travel expenses - allowable business expenses - Held that:- The details of the expenditure were duly furnished during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 1,00,000/- on adhoc basis as against ₹ 8,39,577/- made by the A.O. without giving any specific findings. 4. The appellant prays that the order of CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary. Ground No.1 3. The Revenue, vide ground No.1, has agitated the action of the Ld. CIT(A) in deleting the addition of ₹ 3,18,41,394/- made by the Assessing Officer (hereinafter referred to as the AO) as unexplained cash credits on account of gift received by the assessee from his brother Mr. Zulfikar K. Momin. 4. During the assessment proceedings, the AO noticed that the assessee had shown to have received a gift of ₹ 3,18,41,394/- from his brother Mr. Zulfikar K. Momin. He noticed that said Mr. Zulfikar K. Momin was the employee of the assessee and had received salary of ₹ 1,32,000/- during the year consideration from the assessee. In the books of the assessee, one account in the name of Mr. Zulfikar K. Momin was maintained which was other than the salary account. Mr. Zulfikar K. Momin was having opening credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account. iv) The amount received by the assessee is without any consideration as there is no such entry in the account which suggests of any consideration being paid. v) The RBI Bonds are not to have been shown as alleged gift. The gift as shown by the assessee is executed through JV passed on 31st March, 2007. 5. In appeal, the Ld. CIT(A), after considering the submissions and the evidences on the file, observed that in this case the identity of the donor Mr. Zulfikar K. Momin, brother of the assessee was well established. His PAN number was available on record and he was regularly assessed to tax. He further observed that the financial capacity and creditworthiness of the donor was also established from the copies of the income tax returns, balance sheet, capital account and other details relevant to assessment years 2001-02 to 2007- 08. Mr. Zulfikar K. Momin had substantial capital and regular income. There was a relationship between the donor and the donee and the gift was out of natural love and affection. He further observed that the genuineness of the transaction was also established as the entire transaction of gift had taken place through proper banking chan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. Authorised Representative (AR) of the assessee has invited our attention to the decision of the Hon'ble Delhi High Court in the case of CIT vs. Naresh Kumar (2013) 262 CTR (Del) 389 wherein the Hon'ble Delhi High Court has held that the amendment made to section 40(a)(ia) of the Act vide Finance Act, 2010 which states that the due date of deposit of TDS will be the date of filing of return u/s 139(1) is applicable retrospectively. While holding so, the Hon'ble Delhi High Court has relied upon another decision in the case of CIT vs. Rajinder Kumar (ITA No. 65/2013) and further on the case of CIT vs. Jagannath Steel Corporation observing that where the statute is curative or merely declaratory of previous law, retrospective operation is generally intended. Further the Hon'ble Calcutta High Court in the case of CIT v. Virgin Creations (in GA 3200/2011 dated 23/11/2011) has held that the amendment to section 40(a)(ia) by the Finance Act, 2010 is to be considered as retrospective in-as-much as it is only toward mitigating a hardship and, thus, is to be considered as curative in nature. In view of the above decisions of the Hon'ble Delhi High Court and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y nature of the assessee s business and prevailing cut-throat competition required foreign travelling for meeting customers, exploring new avenues and buyers, regular personal meeting with customers to understand their needs, taste, requirements, etc., latest trends in the market, and market conditions, follow up for payments, the need for exploring new markets, new customers, regular communication and personal meetings with customers etc. He further observed that Mr. Zulfikar K. Momin, the sales manager of the assessee visited several countries in connection with assessee s business and incurred required expenses for the same. The details of the expenditure were duly furnished during the assessment proceedings as well as appellate proceedings before the Ld. CIT(A) such as the name of person visited, name of the country, period of visit, detailed break-up of expenses etc. The detail of the customers and the country-wise business generated was also filed. It was also explained that the gifts and entertainment expenses were incurred for maintaining harmonious and cordial business relationship and personal rapport. The Ld. CIT(A), considering the overall facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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