TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 350
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.... 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 9,51,665/- being courier charges reimbursement in principal, instead of which the Ld. CIT(A) has taken only 15% of this reimbursement as income. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 5 lakhs cash deposited in undisclosed bank account in Kotak Mahindra Bank Ltd. as part of undisclosed sale proceeds collected from sales made in market in cash on the basis of mere statement of assessee during the appellate proceedings without appreciating the fact that there is no supporting evidence of any sale or purchase transaction and the transaction is not reflected in the audited account. 4. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 19,55,282/- on account of unexplained investment without appreciating the fact that the assessee failed to furnish any explanation during the course of assessment proceedings. 5. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in changing single stage of estimation o....
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....e of 2,09,07,668/-was added to the income of the assessee by the AO vide assessment orders dated 31.12.2008 passed u/s 143(3) of the Act. Further, the assessee claimed courier charges of Rs. 9,51,665/- as revenue expenditure. On verification of the agreement for consignee agent between the assessee and Casio India Company Private Limited, it was observed by the AO that the courier expenses are to be reimbursed by the Casio India Company Private Limited . The assessee was show caused vide notice dated 24.12.2008 , that since the courier charges were being reimbursed by the Casio India Company Private Limited , then why said courier charges of Rs. 9,51,665/- should be allowed as revenue expenditure to the assessee. The assessee did not submit any explanation and hence the AO disallowed the courier charges of Rs. 9,51,665/- and added the same to the income of the assessee vide assessment orders dated 31.12.2008 passed u/s 143(3) of the Act. 6. Aggrieved by the assessment orders dated 31.12.2008 passed by the AO u/s 143(3) of the Act, the assessee filed first appeal with the CIT(A). 7. The assessee filed a statement of facts along with the grounds of appeal before the CIT(A), in whic....
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....ng the provisions of section 145 of the Act keeping in view that the assessee is an C & F agent and gets commission from Casio India Company Private Limited on the goods sold through the assessee. The total commission received was Rs. 39,11,279/- which is supported by the TDS certificate issued by the Casio India Company Private Limited and ledger extracts from the M/s. Casio India Co. Pvt. Ltd.. It was stated before the CIT(A) by the assessee that these documents are already on record with the AO who had obtained the same directly from the Casio India Company Private Limited by calling information u/s 133(6) of the Act. The assessee requested the CIT(A) that the income from commission be estimated at reasonable rates. 8. The CIT(A) considered the submissions of the assessee and the assessment order of the AO . In view of the fact that the assessee has herself conceded that the income has not been correctly calculated and offered for taxation, the CIT(A) found that action of the AO in calculating the profit on sales of Rs. 2,09,07,668/- on which the assessee had not declared any profits could not be faulted with. Further the assessee had himself submitted on 29.11.2009 that the ne....
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....stimate the total profit at Rs. 10,74,418/- from business. The Sr. DR stated that the courier charges has been wrongly claimed as expenses because the said expenses were reimbursed by Casio India Company Private Limited as per terms of the agreement hence, the order of the CIT(A) should be set aside and the AO be directed to verify whether it is justifiable to include it as a part of gross receipt and if not then it should be disallowed and added to the income of the assessee. 11. None appeared on behalf of the assessee despite several opportunities being given to the assessee and even notices being served through DR as per order sheet entries , since 2011. We have heard the learned Sr. DR and perused the material on record. We have observed that the assessee has entered into an agreement for consignee dated 11.01.2005 with Casio India Company Pvt. Ltd. , whereby there was a sale of Rs. 3.52 crores which was made through the asssessee by Casio India Company Private Limited which was declared to the Revenue , further there was sale of 2.09 crores which was sale made by Casio India Company Private Limited through assessee , which was not disclosed in the return of income filed by th....
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....ckground of the case and in our considered view, no defect or infirmity is observed in the working of the estimates by the CIT(A), which is hereby ordered to be confirmed. We order accordingly. However, with respect to courier charges of Rs. 9,51,665/- being included in the income of the assessee on estimated profit rate basis as set out above, direction for limited verification are hereby issued to the AO to verify whether the courier charges of Rs. 9,51,665/- debited by the assessee to the Profit and Loss account and claimed as an expenses by the assessee in the return of income filed with the Revenue, as per the agreement with Casio India Pvt. Ltd. are to be part of gross revenue or were reimbursed by Casio India Company Pvt. Ltd. separately and if these expenses are found to reimbursed by the Casio India Company Private Limited separately, then the total amount of courier charges of Rs. 9,51,665/- claimed by the assessee as revenue expenses will be disallowed, otherwise the income as computed by the CIT(A) is confirmed. We order accordingly. This will dispose of grounds 1 & 2 of the revenue's appeal. 12. With respect to ground no.3, during the course of assessment proceedings....
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.... items so sold by the assessee out of books which were purchased from Thakkral Computers Private Limited. The accountant had not recorded these purchases or sales from Thakkral Computers Pvt Ltd. . She further submitted that since her purchase and sale from Thakkral Computers were less than Rs. 40 lacs, the activity falls within the ambit of presumptive taxation u/s. 44AF of the Act and so the profit may be estimated @5% as per the provisions of section 44AF of the Act. The CIT(A) considered the submission of the assessee and therefore benefit of Rs. 5 lacs was allowed to the assessee with respect to un-accounted sale in cash of electronic items while the addition to the extent of Rs. 22,50,000/- with respect to deposits of cheques for which no details were furnished by the assessee to satisfy the ingredients of Section 68 of the Act , was confirmed by the CIT(A) and also addition on account of interest income of Rs. 4226 credited in Kotak Mahindra Bank Limited was confirmed by the CIT(A) vide orders dated 16.12.2009. 15. Aggrieved by the orders dated 16.12.2009 of the CIT(A), the Revenue is in appeal before the Tribunal. 16. The learned DR relied on the order of the AO while non....
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.... which explanation was accepted by the CIT(A) being plausible and bona-fide explanation in the absence of any incriminating material brought by the Revenue to disprove the contentions of the assessee and in our considered view, we donot find any infirmity in the orders of the CIT(A) which we confirm and the action of the CIT(A) granting relief of Rs. 5,00,000/- is upheld. We order accordingly. 18. During the course of assessment proceedings u/s 143(3) read with Section 143(2) of the Act, the assessee submitted a copy of ledger account of Thakkral Computers Pvt. Ltd. which shows payment of Rs. 24,55,282/- has been made by the assessee from IndusInd Bank, which is a regular bank account of the assessee duly declared in the return of income filed with the Revenue. The AO alleged that the assessee has made investments which are not recorded in the books of account and, hence, the same should be treated as income u/s. 69 of the Act. Despite giving sufficient opportunities, the assessee failed to discharge its onus before the AO. Thus, the AO made an addition of Rs. 24,55,282/- to the total income of the assessee on account of unexplained investment u/s 69 of the Act vide assessment ord....
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....neously deleted by the CIT(A). The total investment was Rs. 24,55,282/- and the AO has correctly made the addition. However, no enquiries were made with Thakkral Computers Pvt. Ltd. The learned CIT(A) should have called for the remand report from the AO with respect to the additional evidences submitted by the assessee. None appeared for the assessee despite several opportunities given to the assessee , since 2011. 23. We have considered the contentions of the ld. Sr. DR and perused the material on record. We have observed that the assessee has made payment of Rs. 24,55,282/- to Thakkral Computers Pvt. Ltd. out of the regular bank account with IndusInd Bank whereby the credits are duly offered for tax by the assessee as per the facts emerging from the orders of the authorities below, the said payments of Rs. 24,55,282/- to Thakkral Computers Pvt. Ltd. had not been recorded in the books of account. The assessee has come forward with the explanation that this represent unexplained purchases and correspondingly unrecorded sales were made. It was further submitted that 5% of the investment be treated as profit u/s. 44AF of the Act and the same should be brought to tax. The CIT(A) has ....