TaxTMI 
TaxTMI 
2018 (3) TMI 1158
X X X X Extracts X X X X
X X X X Extracts X X X X
....grounds of appeal. However, out of the same, five issues arise for consideration, which are decided as under. ISSUE No.1 : 3. Assessee challenged the addition of Rs. 62,890/- outstanding in the name of sundry creditor. 4. The A.O. made the addition of Rs. 62,890/- in respect of outstanding amount in the name of the party Hari Developers (P) Ltd. The A.O. found that the impugned amount was shown as sundry creditor in the name of Hari Developers (P) Ltd. The assessee was asked to prove the genuineness of the credit, but, the assessee could not file the confirmation from the creditor. The A.O. obtained information from their books of account for the assessment year under consideration. in which, the account of the assessee was squared-up....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the party disputed the advance given to the assessee, therefore, it has to be taxed, which, according to the assessee, have been offered for taxation in subsequent year. I, therefore, set aside the orders of the authorities below and restore this issue to the file of the A.O. with a direction to verify this fact of offering the amount in question for taxation in A.Y. 2010-2011 and pass the order accordingly by giving reasonable, sufficient opportunity of being heard to the assessee. This ground of appeal of assessee is allowed for statistical purposes. ISSUE NO.2 : 6. The assessee challenged the addition of Rs. 1,25,000/- in respect of addition to capital account. The A.O. made addition of Rs. 8,67,215/- on account of amount introduced i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stical purposes. ISSUE No. 3 : 8. The assessee challenged the disallowance of 10% out of wages claimed and Diwali expenses. The A.O. noted that assessee has claimed wages of Rs. 91,99,353/- in the P & L A/c. Assessee submitted salary chart. The assessee was asked to furnish name and addresses of the persons to whom wages have been shown payable. The assessee was asked to produce the persons from Sl.No. 8 to 27 in the list of October, 2007 to whom wages have been paid. The assessee submitted that wages are paid to various workers engaged in providing services to the parties. Copy of the payment/salary slip were submitted. Further, letter from the workers who were still working with the assessee were filed. A.O. noted that assessee has fil....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0/- only. So the assessee was asked to justify the claim of increase in Diwali expenditure in this year. The assessee explained that Diwali expenses are annual bonus given to the workers, which is recorded on the salary sheet. The A.O. however, disallowed 10% out of the same. The Ld. CIT(A) dismissed this ground of appeal of the assessee. 9. After considering the rival submissions, I am of the view that addition is wholly unjustified. The nature of business of the assessee is such that the guards are changed time to time and no permanent personnel are employed by the assessee. The assessee produced the books of account, salary chart and confirmation of the employees, who were still in the service of the assessee. An Inspection is also ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rs. 1,08,25,776/- in the P & L A/c and receipts as per Form 26AS is Rs. 1,08,45,466/- which is also mentioned in the assessment order. Therefore, the difference as per 26AS is only Rs. 19,690/-. The A.O. however, made the above addition of Rs. 2,00,159/-. No documentary evidence of undisclosed income was found against the assessee. The A.O. examined the books of account and no adverse material was found. The A.O. has taken the figures from Form 26AS available on the site of the Income Tax Department, which is statement relevant to tax deducted and tax paid and statement of income. As such, receipts of the assessee cannot be increased. Ld. CIT(A), however, dismissed this ground of appeal of assessee. 11. After considering the rival submis....