TaxTMI 
TaxTMI 
2024 (6) TMI 70
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....u/s 14A of the Income Tax Act 1961 read with Rule 8D of the Income Tax Rules, 1962." 3. The assessee company engaged in the business of manufacturing of biscuits, cakes & other bakery products on behalf of Britannia Industries on job work basis. For the purpose of manufacturing the raw material, packing material and other necessary items were provided by the Britannia Industries Ltd. Addition u/s 68: 4. The addition u/s 68 of the Income Tax Act, 1961 has been made by the Assessing Officer owing to the difference in the Form 26AS and the income in the return of income of various parties. 5. The relevant part of the Assessment Order is as under: S. No. Name of Party Section Income in Books and return Income in 26AS Difference Remarks Particulars Amount (Rs.) 1. Britannia Industries Ltd. 194C Conversion income 13,73,31,500 19,65,10,801 2. Excise reimbursement 5,80,38,083 Total-A 19,65,10,801 19,65,10,801 Reconciled &nb....
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....,050 The analysis of above mentioned data at serial no. 2, produced by the assessee during the assessment proceedings, with regard to M/s Dharampal Satyapal Ltd., postulates that receipts of Rs. 1,83,08,508/- were accounted for in the total receipts of assessment year 2013-14 relevant to financial year 2012-13. As per inputs, available on record, the TDS of the instant amount was claimed in assessment year 2014-15 relevant to financial year 2013-14. The AR of the assessee contended that instant receipts shown in form 26AS in assessment year 2014-15 have been brought to tax in preceding assessment year viz. 2013-14. Examination of form 26AS in term of assessment year 2013-14 which was downloaded from the system transpires that receipts of Rs. 2,16,02,712/- were received from M/s Dharampal Satyapal Ltd. and also duly accounted for in the total receipts of assessment year 2013-14. The contention of the assessee could not succeed. The assessee, vide order sheet recordings dated 21.10.2016 was asked to controvert the findings. Vide notice u/s 133(6) of the I.T. ....
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.... Name of the assessee Amount Credited A.Y 2014-15 TDS Made/claimed Amount credited A.Y 2013-14 TDS Made M/s Delta foods (P) Ltd. 4,63,87,260 23,22,853 2,16702,712 2,49,325 Receipts shown in the ITR by the assessee 2,22,19,493 2,32,28,537 2,16,02,712 2,49,325 We have examined the rival submission carefully and details available on record which categorically demonstrate that assessee company has not accounted for receipts amounting to Rs. 1,83,05,853/- in his books of accounts deliberately. Despite providing numerous opportunities, assessee failed to reconcile the receipts and unsuccessfully continued to beat around the bush. The assessee has also claimed the TDS made at the credit amount of Rs. 1,83,05,853/- in his rerun of income, tiled for the year under reference. The assessment proceedings cannot be extended further, in view of repeated blurred response of the assessee. In the light of above facts & findings, Rs. 1,83,05,853/- which remained unexplained, are added back u/s 68 of the Act, 1961 in the total income of the assessee, as additional income to tax for the year under reference. 6. The ld. CIT(A) deleted the addition h....
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....ld. CIT(A) is rightly based on the reconciliation of the amounts, we decline to interfere with the order of the ld. CIT(A). Ground No. 2 Disallowance on account of salary/wages - Rs. 58,64,646: 9. The AO made disallowance on account of salary & wages holding that they were in much difference to the earlier years period. 10. From the details of salaries / wages paid to the employees and the audited accounts, the comparative table below would go to show that the salary / wages paid to workers and the employer contribution towards EPF and ESI had all reduced in the relevant year, contrary to the observation of the AO in the impugned order. Particulars AY 2014-15 AY 2013-14 Salary / Wages paid to workers (excluding Director's remuneration) Rs. 30,78,899/- Rs. 36,99,802/ - Employees contribution towards EPF Rs. 3,88,806/- Rs. 4,52,246/ - Employees contribution towards ESI Rs. 3,47,977/- Rs. 3,87,102/- 11. In support of salary / wages account, appellant company had in the assessment proceedings filed the following details: (i) Salary summary for March 2014 with copy of salary register for the same month by letter dated 30.11.201....