TMI Blog2023 (11) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... the purchase of iron ore lumps totaling to Rs. 2,29,54,031/- made by the assessee from the various suppliers which was duly recorded in the books maintained by the assessee. We note that the assessee has paid for fee for professional and technical services which is liable for TDS u/s 194J which was also added and is included in the addition made - We have also examined the evidences in the form of bank possession notice which proved that the premises of the assessee were attached after the assessee was evicted from the said premises. We observe that the CIT(A) has rightly appreciated all these evidences filed by the assessee and taken a correct and reasoned view in the matter. In view of this, we are inclined to uphold the order of Ld. CIT(A) by dismissing the grounds raised by the revenue. - Shri Rajesh Kumar, Accountant Member And Shri Sonjoy Sarma, Judicial Member For the Appellant : Shri R. R. Mittal, CA For the Respondent : Smt. Rinku Singh, CIT DR ORDER PER RAJESH KUMAR, AM: This is an appeal preferred by the revenue against the order of the Commissioner of Income Tax- Patna-3, [hereinafter referred to as Ld. CIT(A) ] dated 14.02.2020 for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 98/- was treated as unexplained cash credit u/s 69 of the Act and the same was added to the income of the assessee in the assessment framed as stated hereinabove. Similarly the AO made addition of Rs. 2,30,97,280/- on the basis of information appearing in Form 26AS by holding that the assessee was in receipt of Rs. 2,30,97,280/- which was not explained even when the assessee was issued show cause notice dated 28.07.2016. The third addition was made by the AO on estimated basis at Rs. 10,00,000/- for the reason that the assessee has not filed any return of income. 4. In the appellate proceedings, the Ld. CIT(A) deleted all these additions made in the assessment order. It was submitted before the first appellate authority, the AO has estimated the income from business of Rs. 10,00,000/- while making the addition in respect of cash deposits of Rs. 1,52,58,698/- and also made addition in respect of purchase of Rs. 2,30,97,280/- as reflected in Form 26AS on account of TCS deducted by the suppliers. It was contended before the Ld. CIT(A) that the assessee was passing through a very bad time as it has suffered huge losses in the business and the loans/credit limits taken from the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AB by M/s.S.K.Patodia Associates as on 30.09.2013, however the return of income could not be filed due to heavy losses suffered by the company coupled with recovery proceedings initiated by the Bank which led to vacation of premises which resulted in non service of income tax notices. .With regard to cash deposits the appellant by producing all the documentary evidences stated that the same represents the sale proceeds of Crushed Iron Ore Lumps. The appellant further submitted that out of total sales of Rs. 11,09,47,812/- the cash sales comprised only Rs 1,74,98,682/-. Pointing to the observation of the AO in the remand report, the appellant submitted that there is no column in the Tax Audit report to furnish the detail of cash sales made and moreover the AO failed to appreciate the fact that Sales / Vat Tax collected on these cash sales are duly reflected in the Vat return. With regard to addition made of Rs. 2,30,97,280/- based on Form 26AS, the appellant submitted that it contained both TDS and TCS, whereas the AO totally misunderstood the content of 26AS and treated the same as receipt / income u/s,194A and 194J. The appellant further referring to 26AS and audited books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounted the same as purchases in the books of account. Therefore the AO both at the time of assessment as well as during remand proceeding, committed a grave error to treat TCS as TDS and thereby fastening the liability on the appellant. In view of these undisputed facts the AO is directed to delete the addition made of Rs. 2,30,97,280/-. With regard to estimated addition made of Rs. 10,00,000/-, the fact is that the appellant got its account audited u/s.44AB from M/s. S.K.Patodia 8s Associates as on 30.09.2013 itself, however could not file the return due to heavy losses suffered by the company coupled with recovery proceedings initiated by the bank which led to vacation of premises which resulted in non-service of income tax notices. However the appellant e-filed the ROI on 23.09.2016 declaring total loss of (-) Rs. 1,47,29,944/-. Though the ROI is filed after the completion of assessment u/s 147/144 dated 28.07.2016, however the same along with audited B/S, P L A/c and it schedules are available before the AO in the remand proceedings. Further during the remand proceedings, the AO has not pointed any defect in the books of accounts produced before him. Under these circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has collected VAT /sales tax on the total sales including cash sales which was duly in the the VAT Returns filed before the competent authority and all these evidences were ignored in the by the AO during the remand proceedings and so much so that the AO has not allowed any opportunity to the assessee during remand proceedings and reiterated same observations in the remand report as were recorded during the assessment proceedings. We note that TCS has been deducted u/s 206 CJ and 206 CH from the purchase of iron ore lumps totaling to Rs. 2,29,54,031/- made by the assessee from the various suppliers which was duly recorded in the books maintained by the assessee. We note that the assessee has paid for fee for professional and technical services which is liable for TDS u/s 194J which was also added and is included in the addition made of Rs. 2,30,97,280/-. We have also examined the evidences in the form of bank possession notice which proved that the premises of the assessee were attached after the assessee was evicted from the said premises. We observe that the Ld. CIT(A) has rightly appreciated all these evidences filed by the assessee and taken a correct and reasoned view in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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