TaxTMI 
TaxTMI 
2016 (6) TMI 841
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....owed by the AO for non furnishing of documents in support of payments. (iii) Ld. CIT(A) has erred on the facts & circumstances of the case in deleting the addition of Rs. 46,15,761/- which was made by the Assessing officer U/s 40(a)(ia) for failure to deduct TDS as per section 194C of the IT Act against carriage inward / transport charges. (iv) That Ld CIT(A) has erred by accepting the assessee's contention that assessee had not claimed any transportation charges since goods were purchased on F.O.R basis hence the assessee was not liable for deduction of TDS as per section 194C . (v) Ld. CIT(A) has erred on the facts & circumstances of the case in deleting the addition of Rs. 11 ,42,075/- which was made by the AO u/s 41 (1) for cessation of trading liability. (vi) Ld. CIT(A) has erred on the facts & circumstances of the case in deleting the addition of Rs. 15,83,278/- on account of undisclosed purchase of raw material without properly appreciating the fact that the AO has brought adequate evidence on record to prove that assessee had purchase out of books. (vii) Ld. CIT(A) has erred on the facts & circumstances of the case in deletin....
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.... show that the assessee has actually incurred expenditure and that has remained unexplained. In the present case, we find that the AO added such amount on mere presumption without any basis and it is not permissible under law, therefore, we find no infirmity in the order of CIT-A, accordingly ground no-1 is dismissed. 5. Ground no-2 is relating to disallowance of subscriptions, fess & taxes to an extent of Rs. 32,300/- In the assessment proceedings the assessee claimed a total expenses of Rs. 66,324/- towards fees, subscription and taxes in the profit and loss account. The assessee submitted details of such expenses to an extent of Rs. 34,024/- only, but could not produce any details regarding the amount to an extent of Rs. 32,300/- and for such failure, the AO added the same to the income of assessee. Before the CIT-A, the assessee contended that all details of entire expenditures were furnished at the assessment proceedings and sum constituted thereon was incurred towards payment of fees to renewal of mining license, consent fees to WBPCB and CIT-A found all the details were available before the AO and deleted the said addition. The only contention of Ld. DR before us is that ....
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....e assessee submitted all the details before the AO and AO could not appreciate it proper manner and all those details are filed in the paper book. We find that the goods were purchased on F.O.R. basis are evident from the purchase bills of raw materials placed in the paper book and copies of bills which were produced before the A.O and CIT-A having examined such copies of bills showing the value of goods and relying on such evidence, the CIT-A opined that the contention of the assessee was correct and question of deducting TDS does not arise. Therefore, we are of the view that the order of CIT-A is justified and therefore, we confirm the same, accordingly the ground no-3 fails, thus dismissed. 7. Ground no- 4 refers to addition of Rs. 11,42,075/- u/s 41 (1) of the Act. During the course of assessment proceedings the AO found that from the list of creditors as furnished by the assessee that the transactions of involving capital goods are old and for non production of bill no's with amount, date of credit and status as on that date, the AO made the addition on account of cessation of liability. Before the CIT-A, assessee submitted that the liability was recorded in books of accoun....
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....ulated percentage of production ratio with consumption of raw materials. The AO found variation of 11.08 to 25.25 and found other variation of 302.43 to 1245.50 in electrical consumption and production of finished goods as units consumed per M.T production from a chart of month wise. According to him, is abnormal and for not giving any satisfactory explanation of such variation and the AO concluded that assessee had undisclosed production as well as unaccounted purchase. The AO made addition under the head unaccounted purchase Rs. 15,83,278/- and undisclosed production of Rs. 56,78,595/- totaling to Rs. 72,61 ,873/- . 10. Before the CIT-A, the assessee contended that all the details of consumption of raw material, production of Goods, consumption of electricity month wise were furnished. The assessee submitted that production can not be estimated on the basis of electric consumption. The A.O. did not point out any defect in stock register and production register showing day to day transaction and did not reject the books of accounts and relied on a decision in the case of Hans Castings Pvt. Ltd. vs Collector of C. Excise, Kanpur, wherein it was decided that production can not be....