2015 (7) TMI 726

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....ertain material was impounded . As stated by AO, in course of assessment proceeding, though, assessee was granted repeated opportunities to produce its books of account, but, it did not produce them on some pretext or other. AO, therefore, proceeded to complete the assessment to the best of his judgment u/s 144 of the Act on the basis of the information found during the course of survey. It was noticed by AO that the loose sheets impounded during the survey contained details of sale of different plots like plot nos., name of customer, cell no., consideration received in white and black. As per the impounded documents, total plots sold by assessee numbered to 226. Plots admeasuring 500 sq.yds. are 54 in number and plots admeasuring 200 sq.yds. are 172. As per the material found during the survey, AO found that assessee has sold plots to 54 persons and received an amount of Rs. 54,31,500 in white and Rs. 1,29,28,500 in black. AO after going through the impounded material, observed that contents of loose sheets when read along with registered sale documents, revealed that assessee is collecting amounts over and above the sale value mentioned in the sale documents, which is not disclos....

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...., Circle - 2(1), Hyderabad dated 16/02/15 submitted before us, though in course of proceeding before ld. CIT(A), AO has specifically requested for providing him with written submissions and supporting documents filed by assessee before ld. CIT(A), but, no such documents were supplied to him. In this context, ld. DR brought to our notice letters dated 12/07/12 of AO to Ld. CIT(A) as well as assessee. Thus, ld. DR submitted, when assessee submitted statements/books of account before ld. CIT(A) for the first time for reconciling/explaining discrepancies/omissions found as a result of the incriminating material impounded at the time of survey, ld. CIT(A) should have allowed opportunity to AO to go through the same and only thereafter should have decided the issue. He therefore submitted, the matter may be remitted back to AO for necessary verification and deciding the issue accordingly. 8. Ld. AR, on the other hand, strongly relying upon the decision of ld. CIT(A) submitted before us, though books of account were not produced before ld. CIT(A), but, assessee explained the discrepancies arising out of impounded material by submitting necessary documents, which were also before AO in th....

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....ich are at pages 42 to 47 of the paper book. On going through the said list, it is seen that assessee has received an amount of Rs. 3,93,03,683 towards development charges from the customers which as claimed by assessee have been shown as advances received from the customers in the final accounts of assessee. Further, on analysis of the said list with the impounded material, it is seen that in few cases, the amounts received by assessee from customers more or less tally with the amounts shown in white and black as in the impounded material. For example, in case of G. Janardhan, the amount received as per the impounded material is as under: Rs. 1,77,500 white and Rs. 4,22,500 - black, total Rs. 6,00,000 When this is juxtaposed to the list submitted in the paper book, it is seen that assessee has shown Rs. 3,00,000 as the amount received when sale took place and balance Rs. 3,00,000 as development charges. Therefore, in our view, in case of each of the transaction, an exercise has to be undertaken to find out not only the fact whether they appear in the accounts of assessee but also whether there is any variation between the amounts received as per list submitted by assessee and th....

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....ciding the issue. 13. The next issue as raised in ground No. 8 relates to disallowance made u/s 40(a)(ia) of the Act but deleted by ld. CIT(A). 14. Briefly the facts are, during the assessment proceeding, on verifying the P&L account, AO found that assessee has made some payments without deducting tax at source. Such expenditure quantified by AO are as under: Sl.No. Particulars  Amount 1. Agent Commission 27,15,765 2. Ad. Expenses 43,79,683 3. Rent 2,67,318 4. Development charges 52,31,837   Total 1,25,94,603 By observing that the provisions of section 194C applies to such payments, AO disallowed the amount of Rs. 1,25,94,603 by invoking the provisions of section 40(a)(ia). 15. Before ld. CIT(A), it was submitted by assessee that as far as the agent commission of Rs. 27,15,765 is concerned, assessee has deducted tax at source and remitted the same to the govt. account within the prescribed time. As far as the development charges of Rs. 43,79,683 is concerned, assessee submitted that out of the said amount assessee has deducted tax at source on an amount of Rs. 21,27,450 and offered the balance amount of Rs. 22,52,233 to tax. As far as the rent paymen....