TaxTMI 
TaxTMI 
2022 (11) TMI 607
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....s that the assesse is a Private Limited Company engaged in Real Estate Business. There was a Search and Seizure operation u/s. 132 of the Act on 25.11.2010 in M.P. Bullion Group and certain documents belong to the assessee were seized. Therefore a notice u/s. 153C was issued and the assessment was completed making various disallowances and additions. We are concerned only with three additions namely additions made u/s. 69C of unexplained expenditure on the basis of District Valuation Officer's report of Rs. 23,43,123/-, Non deduction of tax at source on Professional Fees and Advertisement expenses u/s. 40(a)(ia) of Rs. 91,00,002/- and disallowance of 20% of total expenditure on labour charges of Rs. 7,52,564/-. 3. The brief facts of the case is that during the course of search proceedings in the case of MP Bullion Group certain documents were belong to the assessee were found and seized. The assessee was constructing a residential project with the name Globus Green Acre. The assessee entered into a ratio agreement with M/s. Goutam Builders (first party) wherein the first party has handed over all the rights to the second party (the assessee) to develop and construct multistoried....
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.... is no TDS is required and wherever and advertisement charges are paid, necessary TDS were being deducted and remitted to the Government account. On verification of the same, the ld. CIT(A) deleted the addition made on account of 40(a)(ia). Disallowance of adhoc expenditure of 20% on labour charges, the ld. CIT(A) deleted the same. After verification of the books of account and supporting documents/vouchers, Muster Roll signed and thumb impression affixed by the labours. 5. Aggrieved against the same, the Revenue is in appeal before us raising the following Grounds of Appeal: 1. "Whether on facts and circumstances of the case, the Ld. CIT(A) was justified in deleting addition of Rs. 23,43,123/- on account of unexplained expenditure as per the DVO report?" 2. "Whether on facts and circumstances of the case, the Ld. CIT(A) was justified in deleting addition of Rs. 91,00,002/- u/s 40(a)(ia) of the Income Tax Act, 1961?" 3. "Whether on facts and circumstances of the case the Ld. CIT(A) was justified in deleting addition of Rs.7,52,564/- on account of disallowance of labour expenses?" 6. Ld. CIT/DR Mr. P.K. Mitra appearing for the Revenue loged in virtua....
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.... professional fees wherein a sum of Rs. 11,33,500/- is paid to Municipal Corporation, Bhopal on 03.08.2009. Similarly various payments made to local authorities which does not require any TDS. The assessee also produced copy of the receipt by the Municipal Corporation of Bhopal at page no. 73 of the Paper Book. On 21.10.2010 payment of Rs. 25,000/- paid to Juris Consultants, Bhopal towards professional fees wherein appropriate TDS was deducted. Similarly in the case of Juris & Fair Consultants Ltd. as against the payment of Rs. 2,20,600/- appropriate TDS was being deducted. The Ld. Assessing officer without verification of these details simply invoked 40(a)(ia). Similarly advertisement and publicity expenses, our attention was invited to the ledger account at page no. 101 of the Paper Book wherein advertisement charges were paid duly deducting appropriate TDS to Aquarius Inc. Bhopal. Therefore the entire disallowance is liable to be deleted. 8.3. Regarding third ground of appeal, the ld. A.R. taken us to page nos. 135 to 190 of the Paper Book wherein the ledger account of labour charges, various bills and vouchers and muster roll of the labourer's record were produced. After ver....
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.... DVO for making an addition. The reliance of the Id. DR on some contrary judgment of some non-jurisdictional High Court is misplaced. It is obvious that when an issue has been decided by the Hon'ble Supreme Court, no lower Court, much less C\ the Tribunal, can disobey the same. Relying on the direct judgment from the Hon'ble Summit Court on ' this issue, the action taken by the AO in making the addition on the basis of the DVO's report, without first rejecting the books of account, cannot be sustained. 5. The Id. DR then contended that the position laid down by the Hon'ble Supreme Court is no more relevant after the insertion of section 142A of the Act. We are not convinced with the submission in so far as the extant assessment year is concerned. It is relevant to note that sub- section (2) of section 142A as inserted by the Finance (No. 2) Act, 2014, w.e.f. 1.10.2014 provides that : The Assessing Officer may make a reference to the Valuation Officer under sub-section (1) whether or not he is satisfied about the correctness or completeness of the accounts of the assessee.' There was no analogous provision prior to this insertion. This shows that the....