2017 (9) TMI 1351
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....jection by this consolidated order for the sake of brevity and convenience. 2. At the outset, we find that the appeal of revenue is time barred by two days and condonation petition has been filed. In view of the concession given by the Ld. AR and considering the condonation petition, we condone the delay and admit the appeal for hearing. 3. The first ground of appeal raised by the revenue is against the action of the Ld. CIT(A) to allow the claim of the liquidated damages to the tune of Rs. 5,48,012/-. Brief facts of the issue are that the assessee had claimed deduction of the liquidated damages of Rs. 5,48,012/- which was debited in the P&L Account which were claimed by the assessee to have been imposed and deducted from the value of goo....
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....alue and payments are made only after deducting the same and later the assessee debits the liquidated damages in assessee's P&L Account. It was brought to the notice of the Ld. CIT(A) that even though the liquidated damages are deducted by the customers, the assessee takes up the matter with the customer for waiver of liquidated damages and whenever the customer agrees and waives the liquidated damages then the assessee credited the same to the P&L Account as has been done in the relevant previous year as well and brought to the notice of the Ld. CIT(A) that Rs. 5,95,864/- out of Rs. 7,68,775/- for 'provision no longer required written back' in other income and drew our attention to Schedule 10 page 33 of the Annual Report which relates to ....
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....affording reasonable opportunity of being heard to the assessee. Therefore, this ground of appeal of revenue is allowed for statistical purposes. 6. The next issue is regarding relief granted by the Ld. CIT(A) on account of suppressed sales amounting to Rs. 1,03,17,909/- on reason that the AO has not specifically rejected the books. Brief facts of the case are that the AO noted that the material consumed during the year has increased by Rs. 60 lacs and the stock value has been enhanced by Rs. 37 lacs when compared with the previous year. The AO also took note of the sale figures included scrap sales which has increased by Rs. 19 lacs only. Therefore, according to the AO, when compared with the previous year quantity wise more products were....
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....-, and the difference was added as suppressed sales. The Ld. CIT(A) took note of the fact that the AO has not rejected the audited books of account and has not pointed out any defects in the books. Without doing so, according to the Ld. CIT(A) the estimation made for increasing the sales and adding the difference as income of the assessee was not warranted. The Ld. DR could not controvert the fact that the AO did not point out any defect in the books maintained by the assessee and without following the procedure laid u/s. 145 of the Act has made the estimation which cannot be sustained in the facts and circumstances of the case. In any case as held by the Coordinate Bench of this Tribunal in ITA No. 642/Kol/2011, ITO Vs. Sri Surendra Kumar ....
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....parties to whom such payments have been made no other evidence was furnished before him, therefore, he confirmed the disallowance made by the AO to the tune of Rs. 45,21,363/-. Aggrieved by the decision of Ld. CIT(A), the assessee is in cross objection before us. 9. We have heard rival submissions and gone through the facts and circumstances of the case. Before us the assessee has filed a paper book along with an application for admission of additional evidence which is placed at page 1 of paper book and the paper book contains confirmation from various parties which relates to payments made towards bill discounting charges which is found placed at pages 2 to 45 of the paper book. According to the Ld. Counsel for the assessee, the assessee....
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....ng with the entire evidence to the AO to adjudicate this issue afresh. Needless to say sufficient opportunity may be granted to the assessee and assessee is directed to cooperate during the remand proceeding. With this observation, this issue is remanded back to the file of the AO for de novo adjudication. Therefore, this ground of assessee's CO is allowed for statistical purposes. 10. Ground no. 3 of assessee's CO is against the action of the Ld. CIT(A) in confirming the addition to the extent of Rs. 88,722/- being 10% of Rs. 8,87,244/- incurred on account of car hire charges, car maintenance and fuel expenses. The AO has noted that the assessee company debited Rs. 5,28,48,338/- under the head administrative and other expenses which inclu....