TaxTMI 
TaxTMI 
2021 (6) TMI 134
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....return u/s.139(1) of the Income-tax Act, 1961 (hereinafter called `the Act') declaring total income at Rs. 14.24 crore. The assessment was completed u/s.143(3) on 30-05-2014 determining the total income at Rs. 160.62 crore. Another assessment order was passed u/s.143(3) r.w.s.147 in this case on 29-03-2016. Thereafter, a survey action was conducted by the office of the DCIT (TDS) on 14-02-2017 which divulged that the assessee had not deducted tax at source on Discount to stockiest amounting to Rs. 272.89 crore; Payment of bonus amounting Rs. 1.35 crore; and Payment of interest amounting to Rs. 9.49 lakh. An order u/s. 201(1)/201(1A) was passed treating the assessee in default on the above scores. On the basis of this information, the Assess....
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.... action that this discrepancy has come to light. Hence, I have reasons to believe that income to the extent of Rs. 1,35,00,436/- has escaped assessment. 2. Further, it is also observed that the assessee provides a discount to the stockiest/distributors. The margin of such discount is worked out to be of 30% which comes out to be Rs. 272,89,86,540/-. This is benefit provided to the distributor/stockiest equivalent to commission paid on which TDS was required to be deducted as per the provisions of sec.194H of the Act which the assessee has failed to deduct. Such failure attracts provisions of section 40(a)(ia) of the I.T. Act 1961 according to which the 100% expenses need to be disallowed. Hence the amount of Rs. 272,89,86,....
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....nd services. The Company has not deducted/withheld any taxes while making provision for interest in its books." Thus, it is apparent that the assessee has only made a provision of Rs. 9,49,150/- towards interest that may be payable by the company for delay in payments. Thus, this is contingent liability and not an ascertained liability the deduction for which is not allowed under any of the provisions of the Act. Thus the same is required to be added to the total income of the assessee which the assessee has failed to do. Hence I have reason to believe that income to the extent of Rs. 9,49,140/- has escaped assessment on this count. Therefore, I am satisfied that this is a fit case reopening the assessment under the provis....
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....ent year. The necessary ingredient for espousing the reassessment after the expiry of four years from the end of the relevant assessment year - where the original assessment was completed u/s.143(3) - is that there must be failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment. If there is no such failure, the AO cannot take recourse to section 147 of the Act. 6. From the Reasons extracted above, it is seen that all of them are in the realm of the assessee making payments without deduction of tax at source and the last portion is about the assessee claiming deduction of provision of Rs. 9.49 lakh towards interest which was contingent in nature. The factum of such three payments and....