Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2020 (3) TMI 1144

..... ce in his command to show that the as agreed by the assessee-contractor and TRL-contractee, the amount of provident fund to be deducted was calculated and statement was submitted by the assessee to the financial department of TRL, obviously with an object to comply with the provident fund proceedings - there is no evidence either before authorities below or before the Tribunal to show that as per the instruction of the assessee, the TRL deducted the provident fund from the billing amount of the assessee for further depositing the same to the provident fund department/competent authority - restore the issue to the file of AO for limited verification as to whether the TRL has deducted the provident fund from the bill raised by the assessee for further depositing the same to the provident fund authority/competent authority. Accordingly, ground No.1 of the assessee is allowed for statistical purposes Bogus purchases - tentative and provision figures shown by the assessee as per the Sales Tax Department in absence of any verification or audit by the Sales Tax Department - HELD THAT:- When the figures of purchase shown by the assessee in the profit and loss account are matching with the .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... at before the authorities below the assessee explained that he is a director of TRL and the payment of provident fund was made by the TRL in the capacity of employer but in the absence of any evidence, expenditure of account of provident fund, the said cannot be allowed and the AO was right in making the addition. Ld. DR also submitted that even before the CIT(A) the assessee only repeated the submissions made before the AO and could not submit any plausible and acceptable explanation in this regard. Ld. DR submitted that it is a settled principle that the person who is claiming the expenditure has to submit the evidence which has not been done by the assessee, therefore, the addition made by the AO and confirmed by the CIT(A) may kindly be approved. 4. Alternatively, ld. DR submitted that the department has no serious objection if the issue is restored to the file of AO for verification of the fact that as to whether the TRL has deducted provident fund amount from the amount of bills raised by the assessee in the capacity of the contractor. 5. Placing rejoinder to the above, ld. counsel of the assessee submitted that from the copies of the monthwise statement of provident fund sub .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ent fund authority/competent authority. Accordingly, ground No.1 of the assessee is allowed for statistical purposes with the direction to the AO as noted above. Ground No.2: 7. Ld. Counsel of the assessee submitted that the CIT(A) is not correct in confirming the addition of ₹ 30,76,893/- holding the same as non- genuine purchase is the result of non-appreciation of facts and law & ignoring evidence produced on wholly wrong premises. Ld. Counsel also submitted that the assessee submitted copy of certificate dated 29.05.2015 issued by the Deputy Commissioner of Sales Tax, Jharsuguda Circle, Jharsuguda regarding total purchase and sales made by the assessee M/s Durga Enterprises during the financial year 2009-2010, which has also been placed at page No.18. Ld. Counsel submitted that total purchase as per revised return was ₹ 1,40,22,080/- and this figure was verified by the Dy. Commissioner of Sales Tax Department, Government of Odisha. Ld. AR further submitted that the same figure has been shown by the assessee in the profit and loss account for the period ended on 31.03.2010, therefore, the same cannot be doubted in any manner. It was also submitted by the ld. AR t .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... assessee submitted that the assessee vide his reply dated 08.03.2013 submitted that the figure submitted with sales tax department may be different which will be verified at the time of audit by the sales tax department. Therefore, the assessee was quite correct and bonafide in explaining the differential amount by way of submitted a certificate issued by the Sales Tax Department, which cannot be doubted in any manner, therefore, the addition made by the AO on wrong appreciation of facts and ignoring the plausible submission of the assessee, may kindly be deleted. 10. On careful consideration of the rival submissions, I am of the considered view that the AO in last para at page No.3 of the assessment order, made addition by observing that the assessee in his submission dated 20.03.2013 has admitted that the original VAT return filed before the Sales Tax Department has some mistake and to patch up the inflation of purchase he filed revised return of VAT is purely after thought. The CIT(A) confirmed the addition by observing that certificate issued by the Sales Tax Department simply mentions that the purchases as per the revised returned are of ₹ 1,40,22,080/- and no verificati .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... total actual amount of sales it is necessary to obtain the details from the Sales Tax Department and no such exercise has been undertaken by the authorities below in this regard to verify the figures shown by the assessee in his profit and loss account, however, the assessee could be able to procure a certificate from the Deputy Commissioner Sales Tax Department, who verified the total sales figures, is matching with the figures shown by the assessee in the profit and loss account and the same was submitted before the ld. CIT(A) and he dismissed the same at the threshold by making very hypertechnical observations that the certificate simply mentions that the purchase as per revised return are of ₹ 1,40,22,080/- and no verification or inspection has been made by the Sales Tax Department into the correctness of the said purchase shown by the assessee in the revised return. Obviously when a competent authority has issued certificate stating same facts from certifying same facts and figures then it has to be presumed that the same has been issued in consonance with the record available with that authority after verifying the relevant records and documents until and unless it is p .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||