TaxTMI 
TaxTMI 
2018 (1) TMI 1291
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....iness as an electrical contractor, supplier and services. The assessee filed its return of income for the assessment year 2010-11 on 12.10.2010 declaring total income of Rs. 5,31,46,950/-. During the course of assessment proceedings, the Ld. AO asked the assessee to furnish the detail of expenses with tax deducted at source. The Ld. AO observed that the following payments were made without deduction of tax at source by the assessee. The assessee pleaded that the expenditure included in the aforesaid table also includes expenditures on which short deduction of tax at source were made by the assessee. The Ld. AO for want of details disallowed the aforesaid sum of Rs. 19,32,090/- u/s 40a(ia) of the Act. Before the Ld. CIT(A) the assessee submitted that there are certain payments for which tax has been duly deducted and remitted by the assessee to the tune of Rs. 7,45,200/-. The assessee submitted a statement showing party wise details together with its requisite TDS remittance, which was duly appreciated by the Ld. CIT(A) and relief Indo Nabin Projects Ltd (Formerly Indo Power ProjectsLtd) was granted to the tune of Rs. 7,45,200/- by the Ld. CIT(A). The assessee further submitted t....
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.... 6. The brief facts of this issue is that the Ld. AO observed that the assessee had claimed bad debt of Rs. 6.41 crores in the computation of the income. The assessee was asked to provide the details of bad debt and provide evidences that the debts had been credited in the accounts of the assessee as income in the earlier years. The Ld. AO disallowed the claim of bad debts by observing that the assessee had not provided the details of income offered in earlier years in respect of the following three parties: Andrew Yule & Co. Ltd. Rs. 6,66,862/- Areva T & D Ltd. Rs. 2,10,250/- Gridco Rs. 8,917/- Total Rs. 8,86,029/- This action of the ld. AO was upheld by the Ld. CIT(A) for the same reason. Aggrieved the assessee is in appeal before us on the following grounds: 2. Disallowance of Rs. 8,86,029/- on account of Bad Debt. On the facts and circumstances of the case and in law, the Ld. CIT(Appeals)-4, Kolkata was wrong in confirming the disallowance of the claim of Bad Debt amounting to Rs. 8,86,029.00 on the ground of non-furnishing of any detail and also non-substantiation of the claim inspite of production of necessary documents showing t....
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....cts and circumstances of the case. 9. During the course of assessment proceedings, the assessee furnished the details of sundry creditors together with names and address of the parties thereon before the Ld. Indo Nabin Projects Ltd (Formerly Indo Power ProjectsLtd) AO. The Ld. AO sought to verify one such party M/s Anvil Cables Pvt. Ltd. (among others), u/s 133(6) of the Act. The said party directly furnished the confirmation before the Ld. AO. From the same, the Ld. AO observed that there is a difference in closing balance of Rs. 17,71,820/- vis-à-vis the balance sheet of the assessee in its books. The assessee in response to the show cause given by the Ld. AO furnished reconciliation as under: Closing amount as per party ledger - Rs. 28,90,864/- Add: Bill No. 76 raised by party but not considered in its account - Rs. 17,71,820/- Closing amount as per assessee's ledger - Rs. 46,62,684/- The assessee also replied that the entire purchase documents in this regard were routed through bank in respect of letter of credit facilities (L/C facility) availed by the party. Since, the documents had been received through banks by the assessee, the assessee proce....
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....itself. We find that this is a case wherein the other party M/s Anvil Cables Pvt. Ltd. having made sales to the assessee and having sent all the requisite documents through bank pursuant to L/C limits, had not recorded the sales in its books of accounts. Instead of passing on of this information to the Ld. AO of the supplier M/s Anvil Cables Pvt. Ltd for necessary action to be taken in accordance to law in the hands of the said supplier, the Ld.AO of the assessee had accepted the statement of account of that supplier as sacrosanct and proceeded to make addition in the hands of the assessee by disbelieving the reconciliation statement and explanation given by the assessee. Hence, in these circumstances, we have no hesitation in directing the Ld. AO to delete the addition made on account of sundry creditors in the sum of Rs. 17,71,820/- in the facts of the case. Accordingly, ground no. 3 raised by the assessee is allowed. 11. The last ground to be decided in this appeal is with regard to non-granting of rebate of tax paid u/s 90/91 of the Act to the tune of Rs. 12,90,662/-. The assessee claimed rebate in respect of taxes paid in full u/s 90/91 of the Act to the tune of Rs. 48,43,5....