TMI Blog2019 (3) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... debtors as shown in the Balance Sheet. However, in the course of appeal proceedings, learned Commissioner(Appeals) has called for all necessary information and details from the assessee and having examined them in detail has found the difference in sundry creditors on account of foreign exchange fluctuation gain The impugned order of Commissioner (Appeals) does not reveal examination of any additional evidence furnished by the assessee. Rather, the order clearly reveals that learned Commissioner (Appeals) has rendered a factual finding after conducting a proper enquiry with reference to assessee’s claim and such enquiry was conducted in pursuance to the power conferred under the statute. That being the case, the contention raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay not have much relevance. - Decided against revenue - ITA no.1364/Mum./2017 - - - Dated:- 8-3-2019 - Shri Saktijit Dey, Judicial Member And Shri N.K. Pradhan, Accountant Member For the Assessee : Shri Ramkrishna A. Lingsur For the Revenue : Shri Rajeev Gubgotra ORDER PER SAKTIJIT DEY, J.M. Aforesaid appeal has been filed by the Revenue challenging the order dated 26th October 2016, passed by the learned Commissioner (Appeals) 42, Mumbai, for the assessment year 2012 13. 2. In ground no.1, the Revenue has challenged the deletion of addition of ₹ 88,50,833. Ground no.2, wherein the Revenue has challenged violation of rule 46A of the Income Tax Rules, 1962, is also in connection with ground no.1. 3. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was due to the accounting of fluctuation in foreign exchange. It was submitted, in the statement submitted to the Bank, the foreign exchange rate as on 31st March 2012, was taken. Whereas, the effect of forward bill discounting contract entered with respect to the invoices raised on the debtors prior to 31st March 2012, was not considered. Learned Commissioner (Appeals) after considering the submissions of the assessee in the context of the facts and material record observed that the Assessing Officer has not provided any details of the sundry debtors nor has referred to any particular party whose balances do not match with the balances mentioned in the books of account. He observed, unless the Assessing Officer is able to determine any out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition has not specifically referred to the difference in outstanding balances of a particular party. Simply relying upon the sundry debtors figure shown in the statement of account furnished to the State Bank of India, the Assessing Officer has added back the difference between the figure in the said statement and the sundry debtors as shown in the Balance Sheet. However, in the course of appeal proceedings, learned Commissioner(Appeals) has called for all necessary information and details from the assessee and having examined them in detail has found the difference in sundry creditors on account of foreign exchange fluctuation gain at ₹ 1,40,95,257. It is relevant to observe, the impugned order of learned Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that it is not mandatory to get the firm registered under the Indian Partnership Act,1932. Further, it was submitted that the stamp paper was purchased in the name of Walia Builder and Developer the proprietary concern of Shri Purshottam Walia, one of the partners of the firm. The Assessing Officer did not find merit in the submissions of the assessee. Referring in extenso to the statement recorded in the course of survey operation as well as post survey proceedings, the Assessing Officer observed that in the said statement the assessee had categorically stated that the only partnership deed was dated 21st April 2008, and thereafter there was no change in the partnership deed. He observed, in the said statement it was stated thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative relied upon the observations of the Assessing Officer. 12. The learned Authorised Representative relied upon the observations of the learned Commissioner (Appeals). 13. We have considered rival submissions and perused material on record. It is evident, the Assessing Officer has disallowed the interest and salary payment made to the partners primarily relying upon the statement recorded from one of the partners of the firm during survey and post survey proceedings. However, in the course of assessment proceedings, the assessee has furnished an amended partnership deed providing for payment of salary and interest to the partner. It is evident, the Assessing Officer has refused to accept the amended partnership deed pointin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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