2024 (12) TMI 1592

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.... these appeals. Since the issue involved in these appeals is common, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. 2. Briefly stated relevant facts are that the assessee is a partnership firm engaged in the business of rice mill. It filed the return of income for the assessment year 2012-13 on 30/09/2012, declaring an income of Rs.6,50,780/-. Assessment under section 143(3) of the Income tax Act, 1961 ("the Act"), was completed by order dated 09.01.2015 by assessing the total income at 9,50,780/-. 3. Subsequently, learned Assessing Officer received information from CTO, Bodhan circle, Nizamabad Division stating that there was a short payment of sales tax for the peri....

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....m the genuineness of the VAT and CST payments, no relief could be denied. 6. Apart from this, before us, the assessee took another plea that the tax consultant deeply frauded the assessee by breaching VATIS portal and preparing bogus challans driven by the greed to unduly enrich himself, which the assessee is unaware of. The further plea of the assessee on this aspect is that an FIR was lodged with police against the tax consultant and evidence to that fact is furnished to the state CID also. On this score also, the assessee pleaded before the learned CIT(A) that since it paid the amount to the VAT consultant, who misappropriated the same, assessee is entitled to claim the loss arising out of the misappropriation by the agent. 7. Lear....

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....ion in the return. 10. We have gone through the record in the light of the submissions made on either side. It is a fact that no part of the total sum of Rs.1,04,60,903/- was proved to have been remitted to the Government exchequer and therefore, learned Assessing Officer disallowed the same. Assessee claims to be a victim of the fraud committed by the agent and entitled to claim deduction in respect of such sum also, which the authorities below denied. To establish the fraud, assessee filed complaint against the tax auditor and produced the copies of FIR and the CID report before the learned CIT(A). But, the authorities below refused to grant any relief under section 37(1) of the Act. 11. On this aspect, in the case of Badridas Daga ....

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....seless to make them in view of the financial position of the persons concerned, then and then alone the loss could be allowed. All the factual aspects require consideration by the authorities below in the light of the decisions reported in the cases of Badridas Daga (supra) Associated Banking Corporation of India Ltd. (supra) and Hopkin and Williams (Travancore) Ltd (supra). It would, therefore, be in the interest of justice to set aside the impugned order and restore the issue to the file of the learned Assessing Officer for verification of the facts in respect of entitlement of the assessee to claim deduction of the amount said to have been misappropriated by the VAT consultants. 13. We, therefore, set aside the impugned order and rest....