TaxTMI 
TaxTMI 
2010 (12) TMI 784
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....f the assessee by the Assessing Officer after invoking the provisions of section 199 of the IT Act, 1961. 3. Assessee in this case is a trader of sulpher and coal tar pitch. As per the TDS certificate annexed alongwith the return of income, Assessing Officer noted that payments have been made by the various persons on account of contract. TDS were also deducted u/s 194C. A perusal of the profit and loss account shows that assessee had not accounted this contract receipt in his profit and loss account because only sales have been disclosed. On the other hand assessee had claimed benefit of TDS. Assessee responded that tax has been deducted by the above parties on supply of goods. In support of this contention assessee also submitted ....
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....s) in this regard. 7. The next issue raised is that Ld. Commissioner of Income Tax (Appeals) erred in granting the relief to the assessee at Rs.58,771/- which was rightly added to the total income after invoking the provisions of section 40A(3) of the IT Act. 8. On this issue Assessing Officer noted that a perusal of sulpher purchase account revealed that assessee had made certain payments in cash in addition to the payments made by cheques. The total of these payments came to Rs.2,93,855/-. Assessing Officer observed that assessee had not adduced any documentary evidence that these payments are covered under the exceptions provided under Rule 6DD read with section 40A(3). Accordingly, Assessing Officer disallowed 20% of the....
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....we uphold the order of the Ld. Commissioner of Income Tax (Appeals) on this issue. 11. The last issue raised is that Ld. Commissioner of Income Tax (Appeals) has erred in granting relief to the assessee at Rs.7,38,478/- which was disallowed by the Assessing Officer out of interest paid by the assessee due to the reasons that the assessee has utilized its borrowed funds in the acquisition of capital asset which were not forming capital assets of the business carried on by the assessee. 12. On this issue Assessing Officer noted that certain advances were taken by the assessee for utilization of the acquisition of capital asset. On this issue Assessing Officer also held that assessee has borrowed money for acquisition of immova....
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....the outset, we note that the nature of asset which was purchased in this case has not been brought out either in the assessment order or in the Ld. Commissioner of Income Tax (Appeals)'s order. Without examining the nature of asset, adjudication on this issue is not possible. Though the ld. counsel of the assessee submitted that all assets purchased were for business purposes. However, this fact is not emanating out of the records. Under the circumstances, we remit this issue to the files of the Assessing Officer to examine the issue afresh in light of our direction as above. Assessee's cross objection (122/Del/2009) 16. The first issue raised in the assessee's cross objection is that Ld. Commissioner of Income Tax (Appeals)....