TaxTMI 
TaxTMI 
2025 (7) TMI 518
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Ld. CIT(A) has erred in taxing this amount of Rs. 25,89,500/- as unexplained expenditure u/s 69C and confirmed the action of the Assessing in taxing the same as per the provisions of section 115BBE. 2. a). That the Ld. CIT(A) has erred in confirming the addition of Rs. 1,02,10,256 i.e. (Rs. 76,20,756/- + 28,89,500/) as per page 66 of the order and taxing the same as per the provisions of section 115BBE. b). That the Ld. CIT(A) has erred in not granting the relief of labour of transporters of outgoing and incoming Vehicles, as on the date of survey, which ought to have been considered, for which, the documentary evidence was filed and which was considered by the Assessing Officer in his remand report and, as such, the inclusion of such labourers of the transporters, while confirming the addition of wages of such labourers in the hands of the assessee is against the facts and circumstances of the case. c). That the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in extrapolating the wages for the whole year, rather that restricting the addition upto the date of survey i.e. on upto 08.10.2018 and, as such, extrapolation of wages a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ime of hearing of appeal." 5. Brief facts as explained by the Ld. Counsel for the assessee are that the assessee is engaged in the manufacturing of Scaffolding items and has three independent units. The basic raw material in respect of such manufacturing activity is Round, HRSheet, Pipe, Wire Road and Zinc etc. Both the raw material and finished goods are very heavy and finished goods are long in size being used for construction activity on large scale. 6. The assessee is maintaining common books of accounts for all the units and return is being filed on the basis of audited books of accounts. The facts leading to the addition made by the Assessing Officer (AO) are that there was survey on all the three premises of assessee on 08.10.2018, wherein, the assessee had surrendered Rs. 1,60,00,000/- on account of difference in sale price of scrap and as per actual sale amount and sales price as booked in the books of accounts and difference in wages and salary as per books of accounts and as found during survey. 7. The assessee filed a letter, which have been reproduced in the assessment order at page 3 of the Assessing Officer and, accordingly, this surrender of Rs. 1.60 crores....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that complete reconciliation was submitted and such notings was only on account of routine fund planning for the purposes of payment to be received and payment to be made to different parties. All such notings were out of the regular books of accounts, for which, ledger copies have been furnished and the Ld. CIT(A) has reproduced that page of the seized document alongwith the chart submitted by the assessee. The confirmed copies of accounts of the parties are at page 53 to 55 of his order. He deleted the addition. The Ld. Counsel relied upon such finding of CIT(A). It was also argued that such evidences were submitted before the CIT(A) and they were forwarded to the AO who could not rebut such evidences as furnished by the assessee. 12. With regard to addition of Rs. 8,95,342/-, this addition was made on the basis of one piece of paper, which have been reproduced in the order of AO at page 8 and at page 56 of the order of CIT(A). The Ld. CIT(A) has deleted the addition of Rs. 8,95,342/- since the same are through banking channel in respect of payment of salary and wages and the same has been mentioned under the column 'bank' in the seized document. The Ld. Counsel relied upon th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e is getting the job of 'Zinc Plating' with the help of skilled labour of certain other parties, names of such parties have been in the order AO and all such payments for such outside labourers, working in assessee's 'Zinc Plant' are being made through banking channels by deducting TDS. The CIT(A) looking into all the submissions has given his finding in the order. He has given a relief of such labourers to the tune of Rs. 29,89,964/- (as per page 65 & 66 of the order) and also gave a benefit of Rs. 1.60 crores as offered during survey. Since that amount has not been utilized anywhere else. Thus, he has confirmed the addition of Rs. 76,20,756/-, besides that he also confirmed the addition of Rs. 25,89,500/- as per seized document and applied the provisions of section 115BBE. The assessee is in cross appeal on these issues. 16. It was argued by the Ld. Counsel that due to heavy material, which keeps on coming in and going out in all the three units, in heavy vehicles (gave a list of the Vehicles along with documentary evidences of each and every vehicle on the dates of survey) and further argued that with each truck, four to five persons accompany for loading and unloading becaus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....id to the parties through banking channel. Other evidences as filed during the course of proceedings before the CIT(A) were forwarded to the AO and in the remand proceedings. The AO has not been able to rebut such submissions/evidences. It was further argued that no evidence is there with the AO for estimation of salary and wages payment for complete year instead of date of survey on 08.10.2018. 20 We have considered the rival submissions alongwith 'paper books' filed by the assessee, alongwith brief synopsis. Facts are not disputed that the assessee is engaged in the manufacturing of scaffolding and there was a survey on 08.10.2018. During survey, the evidence of suppression of sale price of scrap was found, which have been mentioned in the surrender letter in the assessment order and since the source of the amount surrendered during survey to the tune of Rs. 1.60 crores were out of the business income and also during survey, no such other activity has been noticed, other than normal business activity, in which, the assessee is engaged in manufacturing of scaffolding. Even during survey, the statement of one partner, namely, Sh. Vaneet Garg was recorded, in which, he has offere....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... account of unsecured loan from Sh. Ashutosh Gupta, the source of source has been provided by the assessee and interest have been paid after deducting TDS. Further, the confirmation from Ashutosh Gupta alongwith ITR and Bank statement has been filed. Thus, the identity, genuineness of transaction and capacity of creditors stands proved. So, under such circumstances, the CIT(A) has rightly deleted the addition on this ground. 24. Ground No. 6 of the department appeal is with regard to unexplained expenditure. The correct figure should be read at Rs. 1,89,89,964/- as against the figures of Rs. 1,98,89, 964/- as per grounds of appeal of department. The DR argued that it is an admitted fact that certain payment of salary and wages were being paid by the assessee outside the books of accounts and which were sourced from the amount of Rs. 1.60 crores offered during survey as additional business income out of the suppression in the sale prices of scrap. The contention of the assessee, which have apparently been accepted by the CIT (A) with regard to the payment to the labourers of other parties for Zinc Plating. It was paid through banking channels, after deduction of TDS, the CIT(A) h....