TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 963
X X X X Extracts X X X X
X X X X Extracts X X X X
....y Ld. CIT(A) with regard to the pre-sale and post-sale discount. c) Disallowance of other reconciliation items Rs. 167.58 crores. d) TDS credit. 2. At the time of hearing, the ld. A.R. advanced his argument with regard to the issue relating to disallowance of "other reconciliation items only. With regard to the ground relating to reopening of assessment, the Ld. A.R. requested the bench to keep the same open. Accordingly, the ground relating to validity of reopening of assessment is kept open. The grounds relating to other two issues are dismissed as not pressed. 3. The revenue is in appeal assailing the decision of Ld. CIT(A) in deleting the addition relating to miscellaneous accrual entries amounting to Rs. 88.01 crores. 4. The ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Less: Write off/refund/return reserve (95,93,91,564) Less: Sale of capital assets and raw material included in VAT return but not in product sales (6,47,59,479) Less: Credit notes posted to revenue account but excluded in VAT return (16,56,61,853) Less: Booking in discount accounts (40,78,23,481) Less: Other item/reconciliation item (7,82,41,309) Net sales on product and services Sales Rs. 6185,34,98,551 Service Rs. 737,57,41,325 6922,92,39,876 The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g the difference of Rs. 10.21 crores. The ARs submitted that, it is nothing but difference due to reclassification. Addition as per assessment order Amount as per submission Difference Toner & Cartridge 12,02,05,485 Excise duty 54,57,83,616 Forgiveness of debt 30,85,75,018 Sub total 95,93,91,564 97,45,64,146 Sale of Capital asset 6,47,59,479 6,80,85,398 33,25,915 Credit note 16,56,61,853 16,57,22,276 Discount account 40,78,23,481 38,72,35,346 2,05,88,135 Other item 7,82,41,309 7,82,41,309 Total 167,58.77,686 159,56,07,166 10,21,55,359 Further stated that in respect of other adjustme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....scount Account', the assessee could not furnish details to the tune of Rs. 2,05,88,135/-. Similarly in respect of 'Other item', the assessee could not furnish details to the tune of Rs. 7,82,41,309/-. The total of both these amounts works out to Rs. 9,88,29,444/-. 8. Despite furnishing details, we notice that the Ld. CIT(A) has confirmed disallowance of Rs. 167.58 crores. In our view, this is not justified. Accordingly, we are of the view that the disallowance should have been restricted to the amount for which details could not be furnished by the assessee. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and direct the AO to restrict the addition to Rs. 9,88,29,444/- on this issue. 9. We shall now take ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Ld. CIT(A) deleted the disallowance with the following observations:- 13.1 Further, the Addl. CIT LTU has given his comments after verification of the details in respect of miscellaneous accruals as under: - Details in respect of miscellaneous accruals Remark:- It is noted that total adjustments on the above mentioned categories made in assessment was Rs. 167.59 crores. However, the assessee submitted details totaling to Rs. 159.56 crores leaving the difference of Rs. 10.21 crores. Ars submitted that, it is nothing but difference due to reclassification. The submission is very voluminous and it is very difficult to comment on each item in such short time, after verification. Therefore, more time required to verify this information.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion item" and miscellaneous accruals by stating that the time given to him was not sufficient in order to verify voluminous details. However, the Ld. CIT(A) has observed that the A.O. has offered his comments in respect of this item also. However, the Ld. CIT(A) has extracted the reconciliation statement with regard to the "other reconciliation items" (referred as 'miscellaneous accruals') which is not relevant to the present issue. Further, in paragraph 13.2, extracted above the Ld. CIT(A) has observed that the assessee has demonstrated that the above said amount has already been disallowed in determination of taxable income for assessment year 2008-09. However, it appears that the assessee has not submitted so before Ld. CIT(A). ....