2021 (7) TMI 679

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....les. 2. Because during the relevant FY 2015-16, from 01.04.2015 to 31.12.2015, there was no requirement to quote the Permanent Account Number in the documents pertaining to the transaction of Sales or Purchase of Goods or Services of any nature and no financial limit was also prescribed by the statute. Under the provision of sub clause C of Section 139A (5) r/w Sub Section 8 of Section 139A of 1961 Act, the Central Government amended the provisions of Rule 114B of 1962 Rules w.e.f. 01.01.2016 whereby the payee is mandated to quote his Permanent Account Number in all the transactions of Sales or purchases when the value of transaction exceeds 2 lakh rupees per transaction as mentioned at Serial No. 18 of the table given in the Rule 114B. In none of the transactions which were the subject matter of enquiry and scrutiny were more than Rs. 50,000/-. Therefore, the jurisdictional facts did not exist for the Assessing Officer to initiate and conclude the adverse findings under Section 68 of 1961 Act. Therefore, the Assessment Order dated 27.12.2018 and impugned order dated 10.08.2020 are without authority and jurisdiction. 3. Because during the relevan....

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.... cannot be added back for dual taxation. Even otherwise only the profit margin can be assessed to any alleged liability not the entire receipts. 7. Because the Hon'ble CIT(A) has gravely erred in law and on the facts and circumstances of the case whilst confirming the disallowances of Rs. 26,88,147/- under Section 68 without considering documents/submission/ case law submitted for "Goods and Sufficient Reason" filed by the Appellant. 8. Because the Hon'ble CIT (A) erred in law as well as on facts in confirming disallowances on the deposits from the distributors in the Company's accounts for non-availability of PAN which were beyond the control of the appellant, to be liable for disallowance under Section 68 of the Act. The company had submitted the details of the Distributors and the sample ledger copies to the Commissioner (Appeal) in advance. 9. Because the Ld. CIT(A) failed to appreciate that the deposits of Rs. 26,88,147/- made by 18-20 distributors out of 4000 distributors, was in the nature of EPRS (Electronic Purchase Recharge System) recharge given to distributors, which had been disclosed in the Financial Statement & books of....

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....g expenditure holding it to be capital expenditure as it was incurred the issue of debentures for raising funds for operations of the companies. The ld AO further made disallowances of Rs. 6,23,34,000/- out of interest expenditure holding it to be capital expenditure for the funds for purpose of acquisition of assets and investments for setting up of call centres. The assessment order u/s 143(3) of the Act was passed on 27.12.2018 determining the total income of the assessee at Rs. 85,26,81,824/- against the return income of Rs. 77,42,61,381/-. 4. Assessee preferred an appeal before the ld CIT(A). Out of additions of Rs. 1,20,86,423/- he confirmed the addition of Rs. 26,88,147/- u/s 68 of the act as assessee could not produce the permanent account number of those parties. The assessee also did not produce even the Ledger accounts or the addresses of these parties. He deleted the disallowances of e-stamp due to expenditure of Rs. 40 lakhs and also the interest expenditure of Rs. 6,23,34,000/-. Therefore, the assessee is aggrieved with the order of the ld CIT(A) in confirming the additions of Rs. 26,88,147/- u/s 68 of the Act. The learned CIT - A also noted in paragraph number 4 o....

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....l across India and for the smooth installation/activation and maintenance it has trade partners in the form of distributors/dealer/discharged centres/service franchisees et cetera all over the countries. In order to activate and recharge the set-top boxes of its customers, the accounts of distributors/dealers account is credited by the company through electronic recharge payment system. It is the motive to reach at distributors mobile with the amount which facilitates the dealer/distributor to pay activation amount to the ultimate customers. Distributors deposit money in the bank account of the assessee company and submits the details on the web portal mentioning the complete details of electronic recharge payment requirements and payment details. Post verification of the recharge amount same is transferred to the distributors. In this process the assessee received money from its trade partners, who are small customers. During the course of assessment proceedings the assessee was asked to submit the details of the outstanding advances of Rs. 705 crores out of which the assessee could not submit the permanent account number as well as the address of certain parties and the learned a....