TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 1030
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....es are involved in the captioned appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity. ITA No. 457/DEL/2015 [Revenue's Appeal] 3. Ground No. 1 relates to the deletion of addition of Rs. 10,02,57,308/- on account of reversing amount. 4. During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has reversed bills of Rs. 9.81 crores and Rs. 21.63 lakhs from M/s Nussli [Switzerland] Ltd and M/s Consortium Nussli Comfort Net on account of uncertainty of receiving of sale proceeds. 5. The assessee was asked to show cause as to why these amounts should not be considered as income of the assessee. 6. The assessee explained that the said am....
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....sions of the Act after 01.04.1989. All that is required is to actually write off the debt in the books of account and show that the same was considered in the income of the earlier years. 13. As the assessee has fulfilled both the conditions, therefore, the ratio laid down by the Hon'ble Supreme Court in the case of TRF Limited [supra] squarely applies. No interference is called for in the findings of the ld. CIT(A). Ground No. 1 of the Revenue is, accordingly, dismissed. 14. Ground No. 2 relates to the deletion of addition of Rs. 1,02,184/- on account of additional Sales Tax. 15. The Assessing Officer noticed that the assessee has paid Rs. 1,02,184/- as additional Sales Tax and on receiving no conclusive proof, the Assessing Officer....
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.... the expenses claimed by it. If the Assessing Officer is of the opinion that certain expenses may have the color of personal expenses/benefits extended to the directors of the company, then the same should be treated as perquisites in the hands of the directors but the expenses cannot be disallowed as having personal element in it. 22. Secondly, it is difficult to ascertain which vouchers or bills pertained to personal expenses and which pertained to business promotion, as the directors of the company were entertaining customers during the Common Wealth Games. 23. We do not find any merit in the disallowance made by the Assessing Officer and restriction done by the ld. CIT(A) on the given facts. The Assessing Officer is directed to delete....
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.... some adverse material by conducting enquiry u/s 133(6) of the Act. In the absence of any adverse material brought on record, we decline to interfere with the findings of the ld. CIT(A). Ground No. 4 is dismissed. 31. Ground No. 5 relates to the deletion of addition of Rs. 11,71,69,678/- disallowed by the Assessing Officer on account of unexplained purchases. 32. While scrutinizing the financials of the assessee, the Assessing Officer noticed that the assessee has made purchases during the year from the following parties: 33. The Assessing Officer issued notice u/s 133(6) of the Act for verification of the purchases. On receiving no plausible reply from the aforementioned parties, the Assessing Officer treated the purchases as unexplaine....
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.... Revenue stands dismissed. ITA No. 6791/DEL/2014 [Assessee's Appeal] 42. Ground No. 1 relates to restriction of disallowance to 20%. 43. This issue has been elaborately discussed hereinabove by us in appeal by the Revenue qua Ground No. 3 of that appeal. For our detailed discussion therein, Ground No. 1 is allowed. 44. Ground Nos. 2 and 3 are taken together which relates to the addition of Rs. 27,96,916/- on account of scrap sales of carpet and Rs. 62,79,183/- on account of scrap sales of fence. 45. While scrutinizing the return of income, the Assessing Officer noticed that the assessee has made purchase of carpets at Rs. 57,28,832/-. The Assessing Officer further found that after the Common Wealth Games, 2010 were over, carpets have b....
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....e ld. counsel for the assessee. 52. We have given thoughtful consideration to the orders of the authorities below. It is true that the scrap value of the impugned items have been shown on lower side, but it is equally true that what happened during the construction of the Common Wealth Village and Sports Complex, the Government agencies were after the Organizing Committee and the participating contractors to which included CBI enquiry and other judicial enquiries. We are of the considered view that considering the distress sales surrounded by controversies, it is possible that the carpets must have been sold at throw-away prices. 53. Considering the nature of event, we are inclined to accept the version of the ld. counsel for the assessee....