TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 441
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....and in law, the Ld.CIT(A) has erred in deleting addition of Rs. 1,68,64,954/- made by the AO on account of disallowances of difference of current year and previous year of other long term liabilities, current liabilities and statutory liabilities shown in books of account without appreciating the fact that the assessee failed to furnish the details of current and statutory liabilities and other long term liabilities before the Assessing Officer during the assessment proceedings. 3. Whether on the fact and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting addition of Rs. 1,29,26,925/- made by the AO on account of disallowances made under section 14A of the Income Tax Act, 1961 without appreciating the fact that the assessee did not furnish any details of investment made in shares of various companies. Further, the Ld. CIT(A) erred in the ignoring that section 14A shall be applicable in the case of investment made by the assessee and disallowance u/s 14A shall be worked out even if the assessee does not have any exempt income as clarified by the CBDT as per circular No. 05 of 2014 dated 11.02.2014. This has been further reaffirmed by amendment in Fin....
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....estioning commercial expediency or rationale of the expenses in any preceding year or year under consideration therefore, adhoc disallowance is made by the AO is not justified and liable to be deleted. 4. He has referred to the submission made by the assessee before the Ld. CIT(A). This is only assessment year where the AO has made such adhoc disallowance. The AR has referred to the para 1.1. and submitted that Ld. CIT(A) vide notice dated 27.01.2021 was asked the AO to confirm the facts having a bearing on the appeal. The AO was also asked to specify whether he would like to present at the time of hearing in view of provision of section 250(2)(b) of the Act. The AO did not submit any report or any reply in respect to the notice issued by ld. CIT(A), therefore, it is not a case of considering the record without giving opportunity to the AO. Ld. CIT(A) has verified the relevant record, books of account as well as the facts that the assessee himself has made suo-moto disallowance of Rs. 18,84,65,541/- on account of noncompliance of TDS u/s 40a(ia) of the Act. Thus, about 50% of the total expenses debited in the profit and loss account were already disallowed by the assessee while co....
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....allowance of Rs. 18.84 crores on various grounds. Thus the disallowance is approx. 50%. The disallowances have been made as per law and the same has been reported in tax audit report. In support appellant has filed copy of return of income, computation of income, P&L statement and balance sheet. On perusal of computation of total income it has been observed that the appellant has already made disallowance of sum of Rs. 18,84,65,541/- on account of expenses inadmissible u/s 40a(ia) of the Act. Thus, the disallowance made by the appellant is 49.60%. It also become apt here to mention that the years involved in the search proceedings were different than the impunged assessment proceedings, during the course of search various documents were found and sized on the basis of which the appellant has surrendered additional income and also various documents were found and seized suggesting suppression of profit and inflation of expenses, however, no such cogent evidences has been brought on record by the AO in the year under consideration. Hence, the AO cannot adopt same analogy in both the proceedings. Furthermore, the AO has not pointed out any specific defect in the books of account produ....
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....ence of the long term liability, current liabilities and statutory liabilities total amounting to Rs. 1,68,64,954/- was added to the total income of the assessee as unexplained. The Ld. CIT(A) has deleted addition made by the AO by treating additional evidence filed by the assessee. Ld. DR has submitted that the said additional evidence was not got verification from the AO. Therefore, ld. CIT(A) is not justified in deleting the addition without getting any additional evidence verified. 9. On the other hand, Ld. DR has submitted that during the assessment proceedings. The AO did not even ask any details or question the genuineness of the liability from the assessee. The AO has made the addition without even issuing show cause notice sent on this issue before the Ld. CIT(A). The assessee produced relevant details and evidence and also filed the confirmation of the creditors and lenders. The said additional evidence was forwarded in his remand report to AO for comments and verifications. However, the AO has not conducted any proceedings and submit his remand report only to object the admission of the additional evidences and he has thus, contended that AO was given full opportunity t....
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....dition made by the AO Gopal Krishna Jakhetia 700000 400000 300000 Jyoti Jakhatia 465000 - 465000 Kedarmal Jakhetia 900000 350000 550000 Agroha Infrastructure Developer pvt. Ltd. 230000 - 230000 Total 1545000/- Other Long Term Liabilities Name As on 31.3.2013 As on 31.3.2012 Difference (Addition made by the AO Agroha Indrastruction Developers Pvt. Ltd. 45793575 39230000 6563575 Total 6563575/- Statutory Liabilities Name As on 31.3.2013 As on 31.3.2012 Difference (Addition made by the AO Provision of interest of TDS (AY 2012-13) 606485 - 606485 Provision of interest of TDS (AY 2013-14) 307005 - 307005 Provision of Income Tax (AY2011-12) 7353319 7353319 - Provision of inters on income tax (AY 2011-12) 495059 495059 - Provision for Income Tax (AY-2012-13) 473817 473817 - Provision for Income Tax (AY-2013-14) 4497069 - 4497069 Provision of interest on TDS (A.Y. 2011-12) - 609028 609028 Provision of interest on service tax (AY 2011-12) - 138 138 Entry tax payable (F.Y.2012-13) 1640 37067 35427 VAT payable (F.Y.2012-13 168 - 168 Interest on entry tax payable 40 743 703 Pr....
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....se in current and long term liabilities is due to amount received from directors and their relatives and concerns. The assessee filed a copy of confirmation letter from these creditors/lenders giving the details of name, Pan, Address and date of transactions. The ld. CIT(A) has also recorded the fact that no fresh long term borrowing has been taken by the assessee. Rather the assessee has paid of Rs. 75,48,418/- on outstanding loan of Rs. 3.90 crore as on 31.03.2012 the payment of interest was subjected to TDS. The AO has not controverted these facts records and considered by the Ld. CIT(A) while deleting addition even the AO was given an opportunity of verification and examination of additional evidence but the same was not availed by the AO. Hence in the facts and circumstances of the case, we do not find any error or illegality in the impugned order of the Ld. CIT(A) same is upheld. 13. Ground no. 3 regarding the disallowance made u/s 14A r.w. Rule 8D which was deleted by the Ld. CIT(A). 14. We have heard the Ld. DR as well as ld. AR and considered the relevant material on record. At the outset, we note that there is no exempt income earned by the assessee during the year unde....