TaxTMI 
TaxTMI 
2020 (3) TMI 1139
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....). 2. On the fact and under circumstances of the case the commissioner (appeals) erred in understanding the accounting entry of discount of Rs. 16,91,687 and wrongly treated the bogus sundry creditor. (para8) 3. On the fact and under circumstances of the case the commissioner (appeals) was not justified in rejection of additional evidence and confirming the disallowance of Rs. 999390 for non-submission of Vat return, (para-9) 4. On the fact and under circumstances of the case the commissioner (appeals) was unjustified for not sending for remand the case and confirming the addition of Rs. 2799978. 2. Brief facts of the case are that the assessee filed return of income on 21.01.2011 declaring income from business at Rs. 7,95,422/- afte....
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....4H and also refer to Chapter XVII-B. The AO also noticed that the assessee has made sales to reputed concerns of Rs. 9,45,96,837/- which has been incorporated in the order of the AO. The AO further noticed that in many occasions the assessee has paid more than Rs. 20,000/- in cash to Shri Khagesh Patel. The AO noticed that these amounts have already been disallowed as per Section 40(a)(ia) of the Act. Therefore, it cannot be disallowed again u/s.40A(3) of the Act. The assessee has received all the payments through cheques and he withdrew the cash from his bank account and has made cash payments to Shri Khagesh Patel, which was not accepted by the AO. Therefore, the entire payment to Shri Khagesh Patel has been added into the total income o....
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....ed only 2% instead of 10% and the authorities below have rightly applied the provisions of Section 40A(3) of the Act for payments exceeding Rs. 20,000/- in cash. Therefore, this ground of appeal should be dismissed. 7. After hearing both the sides and perusing the entire material available on record and the orders of the authorities below, we noticed that the assessee has made the payments to Shri Khagesh Patel. On perusal of the documents submitted before us, we notice that the assessee has not deducted TDS as per Section 194H of the Act. He has deducted @2% instead of 10%. It is also mentioned before us that major turnover has been achieved by the assessee from the public sector undertakings and how and why the assessee has paid commissi....
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....nd the assessee is also directed to provide the documents and avoid in taking unnecessary adjournments. Therefore, this ground of appeal of the assessee is allowed for statistical purposes. 8. On further scrutiny of accounts, the AO noticed that the assessee has shown sundry creditors of Rs. 3,85,36,367/- which includes an amount of Rs. 1,30,52,427/- towards Black Diamond Explosives Ltd. It was noticed by the AO that besides manufacturing activities, he was also engaged in trading activity. The assessee had made trading purchase from Asansol, Dhanbad and Rourkela. It was also noticed by the AO that the creditor should have been shown in the name of Black Diamond instead of Black Diamond Explosives Pvt. Ltd. The assessee had purchased explo....
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....sending back the matter to the file of AO for readjudication of the issue. 11. Ld. DR, on the other hand, objected for accepting the additional evidence filed by the assessee and submitted that the AO had given ample opportunity to provide the details, however, the assessee has shown his inability to produce the same, therefore, it would be clear cut violation of Rule 46A of the Income Tax Rules, 1962. 12. After hearing both the sides and perusing the entire material available on record, we noted that the documents provided by the assessee go to the root of the matter which are part of the records, therefore, the contention of the assessee is accepted and the matter is sent back to the file of AO for consideration of the documents and dec....
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....s accepted and accordingly, we send the issue back to the file of AO for adjudication of this issue. The assessee is directed to cooperate with the AO to file necessary documents before the AO for early disposal of the case. 17. Further on scrutiny of accounts, it was noticed by the AO that the assessee has purchased raw material for manufacturing of slurry explosives worth of Rs. 3,15,09,272/-. The assessee was asked to produce the copy of ledger accounts from whom the raw materials have been purchased. The assessee filed the same but the AO noticed that the desired information have not been filed by the assessee, therefore, he issued show cause notice which has been incorporated in the assessment order. The assessee was repeatedly asked....