TaxTMI 
TaxTMI 
2022 (9) TMI 548
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....e following substantive grounds in the instant appeal: - "1. On the fact and in the circumstance of the case and in law of the learned Commissioner of Income Tax (Appeals) - 7, Pune has erred in disallowing and adding back and amount of Rs.32,25,36,699/- on account of Excess Cane price to paid to members & non members. 2. On the fact and in the circumstance of the case and in law of the learned Commissioner of Income Tax (Appeals) - 7, Pune has erred in disallowing and adding back and amount of Rs.98,65,166/- on account of Sugar Sale at Concessional rate. 3. On the fact and in the circumstance of the case and in law of the learned Commissioner of Income Tax (Appeals) - 7, Pune has erred in disallowing and adding back and amount Rs. ....
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....horities have rejected the assessee's impugned claim regarding regular salaries paid to employees only without even questioning the overwhelming genuineness element embedded therein. Mr. Meena quoted Attar Singh Gurmukh Singh vs ITO (1991) 191 ITR 667 (SC) and Rule 6DD of Income Tax Rules in support of the impugned disallowance. He could hardly rebut the fact that case law Anupam Teleservices Ltd. vs ITO (2014) 366 ITR 122 (Guj) has dealt with the similar question of regular & continuing relationship between payer and payee to conclude that such an overwhelming genuine instance of cash payment does not attract Section 40A(3) of the Act. We thus conclude that both the lower authorities have erred in law and on facts in disallowing assessee's....
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....The AO observed that the assessee has received compensation @ Rs. 2,000/- per tone from government whereas the assessee paid Rs. 1,500/- to Rs. 1,850/- to farmers. The assessee did not show any profit from this activity of cattle camp/fodder depots. The AO sought explanation of the assessee that income derived from camps at Rs.34,50,618/- and Rs. 97,91,319/- for depots. The assessee submitted that the final entry has not been passed in books of accounts as Chara Chavni claims are doubtful. The appellant/assessee is submitted that Amant Account is maintained and in balance sheet shown as other payable schedule. The AO rejected the explanation of the assessee being as vague and unclear. The assessee is following mercantile system of accountin....
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.... be shifted to A.Y. 2016-17 in the name of finalization of entries. The Supreme Court in case of Commissioner of tax v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144, 148 (SC), observed: "Income-tax is a levy on income. No doubt, the Income-tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all, there cannot be a tax, even though in book-keeping, an entry is made about a 'hypothetical income', which does not materialise. Where income has, in fact, been received and is subsequently given up in such circumstances that it remains the income of the recipient, even though giv....