2012 (8) TMI 1078

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....oss Objections. 1.1 The following four questions are raised by the appellant proposing them as substantial questions of law: "1. Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 22,47,086/- made on account of disallowance of discount expenditure? 2. Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 5,50,000/- made on account of unexplained cash credit? 3. Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 1,46,016/- made on account of interest on unexplained cash credit of Rs. 5,50,000/-? 4. Whether the Appellate Tribunal is right in law and on facts in deleting the addition of ....

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....100/- as commission paid, which came to be disallowed by the Assessing Officer under section 40(a)(ia) of the Income-tax Act, 1961, on the ground that instead of deducting tax at source at the time of payment, the assessee deducted tax at source in the month of March only. 3.1 The assessee preferred appeal before the Commissioner of Income-tax (Appeals) and succeeded on all aforesaid counts. In respect of discount expenses, the CIT(A) held that there were various evidences in terms of delivery challans, vouchers and cheque details, which prove the factum of expenses in question. He noticed that the Assessing Officer had recorded statements of the eight parties in hushed up manner without properly eliciting necessary details. There were 1....

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.... the discount. The vouchers were signed evidencing the receipt of the discount by them. Similarly, with regard to cash credit amount, the six depositors furnished requisite details to prove their identity, and showed the place of their residence. The loan was received through account payee cheques. Copies of bank statement was given and the details of Permanent Account Numbers were available. All these materials duly proved the genuineness of the transaction of loan as well as the creditworthiness of the depositors. Therefore, the Tribunal did not commit any error in confirming the findings of CIT(A). 5. In respect of addition under section 40(a)(ia) the Tribunal noted that under the Finance Act, 2010, the section was retrospectively ame....