TMI Blog2021 (11) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... te Authority. One of the observations made by learned CIT(A) is that a credit entry of ₹ 3,00,000/- was shown in the bank statement of M/s. Globe Trade followed by transferring the same amount back to the assessee. But this aspect has not been further elaborated by reproducing the bank statement and why the learned CIT(A) has not issued a notice for enhancement of disallowance. Because, in that case, the whole amount should be considered as bogus and not 25% of that. To our mind, both the authorities have not appreciated the facts in right perspective and, therefore, no disallowance is called for. We, therefore, delete the disallowance and allow the appeal of the assessee. - ITA No. 1688/Ahd/2019 - - - Dated:- 4-10-2021 - Rajpal Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r observed that the details of sundry creditors exceeding the amount of ₹ 5 lakhs were called for. The assessee has submitted the list of sundry creditors alongwith confirmation of the persons having closing balance of more than ₹ 5 lakhs. The Assessing Officer has called for the list of 10 sundry creditors and issued notices under Section 133(6) of the Act with the direction to submit information. According to his findings, it has been found that out of 10 sundry creditors, one sundry creditor did not reply and two notices returned un-served; therefore, three sundry creditors out of ten sundry creditors, as appearing in the books of the assessee, remained unverifiable. He noted that the details of these creditors as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditor during the year. However, the appellant has deducted TDS of ₹ 9,080/-. The moot question arises here is when Globe Trade did not supply labour during the year then appellant should have explained the rationale behind deduction of TDS. Undisputed];-, appellant is following mercantile system of accounting- Then it must have raised some bills before deducting TDS. On the other hand, ITR V filed by Globe Trade shows TDS is fully claimed in ITR. Bank statement of Globe Trade (creditor) suggests credit entry of ₹ 3,00,000/- followed by transfer of same amount back to appellant. In other words, appellant debited its bank account for name sake ensuring TDS compliance so as to give a colour of genuineness of transaction. Despite no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be of different source namely the assessee has shown purchase from A but material could have been supplied by B . In that exercise, there can be avoidance of sales tax, excise duty etc... In that background, the Tribunal has quantified the profit element embedded in those purchases at 25% and confirmed the disallowance out of those purchases. So, the reference made by the Assessing Officer is totally misplaced in the given set of facts. 6.1. Let us revert to the findings recorded by the learned CIT(A). Though we could have discussed each three cases, but the amount involved is too small to indulge in such an exercise. A perusal of the discussion made by the learned CIT(A) with regard to M/s. Globe Trade would show that this concern ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
