TMI Blog2019 (4) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... dings of fact recorded by the Assessing Officer, the CIT(A) and the Tribunal, thus, cannot be held to be perverse based on non-appreciation of material on record or based on misreading of any evidence on record which may warrant interference by this Court. No question of law, much less, substantial question of law arise in the appeal. - Decided against assessee. - ITA-112-2019 (O&M) - - - Dated:- 25-2-2019 - MR AJAY KUMAR MITTAL AND MRS MANJARI NEHRU KAUL, JJ. For The Appellant : Mr. S.K. Mukhi, Advocate ORDER AJAY KUMAR MITTAL, J. 1. Delay of 158 days in refiling the appeal is condoned. 2. This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the order dated 27.3.2018 (Annexure A-3) passed by the Income Tax Appellate Tribunal, SMC Bench, Chandigarh (hereinafter referred to as the Tribunal ) in ITA No. 1243/Chd/2016, for the assessment year 2012-13, claiming the following substantial questions of law:- I. Whether under the facts and circumstances of the case, the ITAT was justified in concurring with the order of authorities below in making addition of ₹ 24,77,000/- by e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Accountant the details filed were erroneously entered and later on the correct details as per the books of account by way of reply along with the affidavit dated 20.2.2015 (Annexure A-4) of the Accountant was filed. The Assessing Officer vide order dated 17.3.2015 (Annexure A-1) framed the assessment at ₹ 34,93,670/- by making addition of ₹ 24,77,000/- on account of disallowance of expenditure under Section 40A(3) of the Act. The assessee vide letter dated 20.12.2014 (Annexure A-5) explained the nature of the running account with the sister concern to the Assessing Officer. Feeling aggrieved by the assessment order, Annexure A-1, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 14.10.2016 (Annexure A-2) upheld the addition of ₹ 24,77,000/- made under Section 40A(3) of the Act by the Assessing Officer and dismissed the appeal. Still dissatisfied, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 27.3.2018 (Annexure A-3) affirmed the order passed by the CIT(A) and dismissed the appeal. Hence, the present appeal by the assessee. 4. We have heard lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. and its effect in the cash book as well comes to be the circumstantial evidence on record of the file to prove that assessee has made an attempt to escape the liability under which it was put vide this office letter dated 01.01.2015 and 13.02.2015. Had, there been existing any truth in the contentions of the assessee that earlier account was wrongly prepared, response to this effect would have come on the next date of hearing, i.e. 01.01.2015 and nine adjournments might not have been sought for and the period of about almost two months should have not elapsed. Submission of affidavit from Sh. Kanwaljit Singh S/o Late Sh. Surinder Singh dated 20.02.2015 the alleged accountant is also found false to prove in letter and spirit that the entries of cash payments (confronted to the assessee to be in contravention of section 40A(3) of the Act) were wrongly entered. It only contends that earlier account was wrongly typed by taking the figures in summarized form and mentioning the figures in consolidated manner whereas there is no wrong in doing so. The figures are to be taken in summarized way and consolidated manner for the cash payments transactions of single party in a single da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of the Assessing Officer and hit the crux of the matter and to attempt a summary of Assessing Officer s arguments as below: ( i) When the original and the revised copy of accounts are compared than it is observed that only the daily cash payments above ₹ 20,000/- in the original copy have been split in the revised copy to make sure that daily cash entries come below ₹ 20,000/-. All other entries other than these have not been altered as they do not affect the case of the appellant. ( ii) On page Nos.3 14 of the order, the Assessing Officer has discussed these entries. In the account statements (original and revised), the following entry is written: Date Particulars Vch Type Vch No. Debit Credit Original 09.04.2011 Cr Cash Payment 9 30,000.00 Revised 09.04.2011 Cr Cash Payment 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectively. This argument of the appellant that the accountant consolidated these entries cannot be believed. If any prudent man would add up smaller figures to make a consolidated figure of ₹ 2,70,000/- then the next consolidated entry should appear after the last unconsolidated entry which was part of the first consolidated entry. For example, if unconsolidated entries are in the order ₹ 1, ₹ 2, ₹ 3 and ₹ 4 and they are consolidated into two groups then consolidated entries would appear as ₹ 3 (1+2) ₹ 7 (3+4) in that order. While consolidating the order of entry would not be disturbed. In this case it is not consolidation but splitting. The account statements would clearly illustrate this: Original Entry Revised Entry Cumulative Entry 27.04.2011 Cash Payment 19 Rs. 2,70,000 12.04.2011 - Rs. 19,000 1 Rs. 19,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1,79,500 09.05.2011 - Rs. 16,500 11 Rs. 1,95,500 10.05.2011 - Rs. 19,500 12 Rs. 2,15,000 11.05.2011 - Rs. 16,500 13 Rs. 2,31,500 12.05.2011 - Rs. 19,500 14 Rs. 2,51,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 19,500/- on 15 consecutive days to the same party. ( iii) The Assessing Officer on page 32 of the order has made an observation that voucher numbers were not mentioned on the vouchers, while they were there in the account copies. The appellant has claimed that the Tally Account Software itself generates the voucher numbers. This part of the plea of the appellant is correct. In Tally the primary document is the voucher in which voucher number is auto generated and once the voucher is filled, the ledger accounts gets automatically updated. It is not the other way round. In the case of the appellant, manual vouchers have been made and then ledger account has been generated, which is not a normal procedure of maintaining account in Tally software. The website of Tally Solutions, www.tallysolutions.com/products/ tallyerpa/functions features accounting (accessed on 12.09.2016), makes the following description of their produce on its home page, with the entry of a voucher all books of accounts, all reports, all totals and sub totals are updated instantly. There is nothing more that needs to be done whether you are inserting a forgotten entry or correcting o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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