2019 (1) TMI 1256

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Assessment Year 2011-12. 2. The first issue to be decided in this appeal is as to whether the ld CITA was justified in upholding the disallowance made in the sum of Rs. 48,500/- u/s 40A(3) of the Act in the facts and circumstances of the case. 2.1. The brief facts of this issue are that the assessee is a partnership firm running a rice mill and had filed its return of income for the Asst Year 2011-12 on 27.9.2011 declaring total income of Rs. 5,09,968/-. The ld AO observed in his order that the authorized representative of the assessee appeared from time to time in the assessment proceedings and furnished the requisite details that were called for. The ld AO observed from the ledger of 'Loading and Unloading Charges' that assessee had pa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) of the Act in the facts and circumstances of the case. Accordingly, the Ground No.1 raised by the assessee is dismissed. 3. The next issue to be decided in this appeal is as to whether the ld CITA was justified in confirming the addition of Rs. 2,05,217/- towards undisclosed income in the facts and circumstances of the case. 3.1. The brief facts of this issue are that during the assessment proceedings, the ld AO noted that the assessee did not disclose TDS amounting to Rs. 4,649/- and corresponding income of Rs. 2,05,217/- received from Food Corporation of India, Krishnagar, Nadia. Hence the sum of Rs. 2,05,217/- was added to the total income of the assessee by the ld AO for want of satisfactory explanation. During the appellate procee....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es recovery account before the ld CITA and the ld CITA acknowledges that it is a squared off account. This goes to prove that the transport charges incurred by the assessee on behalf of FCI had been debited in a separate account in Balance Sheet ( and not routed through profit and loss account as an expense) and thereafter the same was reimbursed by FCI to the assessee and on said reimbursement, the account gets squared off. Since FCI had paid transport charges , it had deducted TDS of Rs. 4,649/-. Even though the said sum of Rs. 4,649/- has been wrongly accounted as discount allowed by the assessee instead of TDS, the same would not automatically result in addition of undisclosed income of Rs. 2,05,217/- in the facts of the instant case. W....