9911796707
TMI Blog2024 (5) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of commission expenses of Rs. 16,52,720/- under section 40(a)(ia) of the Income Tax Act, 1961 [In short, the 'Act'] and (iii) taxability of cash deposits aggregating to Rs. 16,28,500/- in the bank account of the appellant/assessee. 2. The issues that we are tasked to decide here are that whether the CIT(A) was justified in upholding the taxability of creditors of Rs. 1,12,75,060/-, disallowance of commission expenses of Rs. 16,52,720/- and taxability of cash deposits aggregating to Rs. 16,28,500/-. 3. The relevant facts for deciding this appeal, in brief, are that the appellant/assessee, proprietor of R.J. Traders, deals in mobile phones and electronic gadgets. The assessee filed its return of income, on 30.09.2012, declaring in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities were in nature of cessation of liabilities. 3.1 Besides the above-mentioned creditors, the AO also noticed that the appellant/assessee had not deducted tax (TDS) on payment of commission expenses debited in his Profit & Loss Account. Therefore, the AO show-cased the appellant/assessee to justify the allowability of such expenses under section 40(a)(ia) of the Act. In response, the appellant/assessee submitted that the actual nature of commission expenses was rebate/discount given on sale of mobile phones and therefore, the same did not qualify for TDS. However, the appellant/assessee failed to substantiate his claim in this regard with any bill/voucher/corroboratory evidence. Hence, the AO disallowed this expenditure of Rs. 16,52,720 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly opposed condoning the delay in filing the present appeal. 5. This appeal was scheduled for hearing nine times. However, non-attended from the appellant's side except once seeking adjournment on 14.02.2024. On request of the Ld. AR, the case was adjourned to 7th May, 2024; however, none attended from the appellant/assessee side on 7th May, 2024. Hence, we have no option except to decide this appeal. 6. We have heard the Ld. DR. and perused the material available on record. There is no dispute and is an admitted fact that there has been a delay in filing the present appeal by 84 days. There is also no dispute that under section 253(5) of the Act, the Tribunal may admit an appeal filed beyond the period of limitation where it is sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ningful manner to sub-serves the ends of justice that being the life-purpose of the existence of the institution of Courts. It was further held by the Hon'ble Supreme Court that such liberal approach is adopted on one of the principles that refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. Another principle laid down by the Hon'ble Supreme Court is that when substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred for the other side cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is in respect of taxability of sundry creditor of Rs. 1,12,75,060/- as a cessation of liability. As per Para 4 of the assessment order, it is evident that G.G.Telecrest Pvt. Ltd. and Uttam Strips Pvt. Ltd. has confirmed the said liabilities as loans/advances and not as creditors. In such facts and circumstances, the liabilities of G.G.Telecrest Pvt. Ltd. and Uttam Strips Pvt. Ltd. have to be disclosed in the balance sheet of the appellant/assessee as loan/advances. It cannot be ruled out that there may not be some error in the grouping of these liabilities under the head 'creditors' instead of 'loans and advances' as these liabilities are not appearing under the head 'loans and advances' in the balance sheet of the appellant/ assessee. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
