TaxTMI 
TaxTMI 
2025 (12) TMI 851
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....reciating the facts of the case and further rejecting the appellant's contention that copy of loan account statement wherein the interest paid is clearly reflected, should be sufficient compliance of the supporting documents called for. Your appellant prays for deleting the disallowance of such interest. 2. On the facts and in the circumstances of the case and in law Ld. CIT has erred in making an addition of the consultancy charges of Rs. 5,00,000/- debited to Profit and Loss account by disregarding the appellant's submission, and concluding that such charges debited to Profit and Loss account are not genuine. Your appellant contents that these consultancy charges paid are genuine and pray for deletion of the entire addition. 3. On the facts and in the circumstances of the case and in law Ld. CIT has erred in making an addition of Rs. 5,70,774/- being sales promotion and travelling expenses made by appellant without appreciating the facts of the case. Your appellant prays for deletion of entire addition. 4. On the facts and in the circumstances of the case and in law Ld. CIT has erred in making disallowance of Rs. 11,84,777/- being GST paid by invoking t....
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....d. Ld.DR submitted that even in the paper book, Assessee has not filed any evidence to prove the same. Regarding Unsecured Loans, ld.DR submitted that though ld.AR has claimed that Unsecured Loans were repaid in subsequent years, no evidence has been filed. Therefore, ld.DR submitted that order of ld.CIT(A) may be affirmed. Findings & Analysis : 4. We have heard both the parties and perused the records. In this case, Assessee had filed Original Return of Income on 31.10.2019 declaring total income of Rs. 38,22,450/-. It is mentioned in the assessment order that there was a search action u/s.132 in the case of the Assessee on 14.11.2019, accordingly, Assessing Officer issued notice u/s.153A of the Act, dated 04.01.2021. Assessee filed Return of Income in response to notice u/s.153A on 26.08.2021 declaring total income at Rs. 38,22,450/-. It is also mentioned in the assessment order that notice u/s.143(2) was issued on 08.09.2021. It is mentioned in the assessment order that hearing was scheduled on 17.08.2021 and 13.09.2021. The Assessing Officer i.e. Assistant Commissioner of Income Tax, Central Circle-1(3), Pune passed Assessment Order u/s.153A of the Act r.w.s 144 of the Ac....
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....g that particular house. In this case, the appellant has neither filed the copy of loan sanction letter nor any interest certificate and he is trying to claim the deduction on the basis of a loan statement which does not mention that the said loan statement corresponds to any home loan. Considering these facts, the claim of the appellant cannot be accepted and the addition of Rs. 55,292/- is upheld. Addition on account of undisclosed contract receipts." 9. During the proceedings before this Tribunal, ld.AR for the Assessee admitted that no interest certificate has been filed. It is specifically mentioned by ld.CIT(A) that the so-called loan statement filed by Assessee does not establish that the loan was Housing Loan. 10. Section 24(b) of the Income Tax Act, 1961 is reproduced here as under : Quote. "Deductions from income from house property. 24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:- (a) ...........................; (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the am....
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....this impugned flat as self-occupied property. In these facts and circumstances of the case, the deduction of Rs. 55,292/- is upheld. Accordingly, Ground No.1 of the Assessee is dismissed. Ground No.2 : 11. This Ground relates to Disallowance of Rs. 5 lakhs which assessee has claimed as consultancy charges. The Assessee had claimed Rs. 5 lakhs as consultancy charges in the profit and loss account. The Assessing Officer asked assessee evidence of the same. However, Assessee failed to file any details, hence, Assessing Officer disallowed Rs. 5 lakhs claimed as consultancy charges. Before ld.CIT(A), Assessee filed certain bills and claimed that the amount was paid to Shailaja Rupchand Paul for liaison work with Government Departments. 11.1 The relevant paragraph no.22 of the ld.CIT(A)'s Order is reproduced as under : "22.1 I have considered the facts of the case and the submissions made by the appellant. The copies of bills raised by the said consultant suggest that the same are serially numbered indicating that the services were rendered only to the appellant. This issue was raised by the AO in the remand report and the appellant has not rebutted the same. 2....
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.... is also noted that NO TDS has been deducted on these consultancy charges. It has been specifically mentioned by the Assessing Officer and ld.CIT(A) that almost entire receipts of the Assessee are from Garware Technical Fibers Limited. The Assessee has claimed expenditure of Rs. 5 lakhs as consultancy charges paid to SHAILJA ROOPCHAND. Though apparently, it is highly unlikely that a person doing consultancy issues all serially numbered invoices from 1 to 5 between June to October 2018 to only one person. However, this cannot be the only reason for disallowance. We are aware that Assessee has to prove the genuineness of expenditure. However, in this case, Assessee has filed Invoices issued by SHAILJA ROOPCHAND and Copy of Ledger Account. The Invoice does mention PAN Number as follows : i. GTLPS8448L 14. Once the Invoices were filed by Assessee, the Assessing Officer should have conducted further enquiries. However, it seems that Assessing Officer has not conducted any enquiry. Assessing Officer should have verified from SHAILJA ROOPCHAND the nature services provided by SHAILJA ROOPCHAND to Assessee. In these facts and circumstances of the case, we set-aside the Disallowa....
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....,777/- u/s.43B of the Act. 16.1 The relevant paragraph of 34.2 of the ld.CIT(A)'s Order is reproduced here as under : "34.2 In this connection, I have perused the copies of Form GSTR-3B filed by the appellant during the appellate proceedings. It is seen that the appellant has filed copies of Form GSTR-3B for the months of December 2018, January. 2019, February, 2019 and March 2019. The details of taxpayment through ITC and through cash as mentioned in these GST returns are as under:- Period Date of filing GSTR-3 Total tax payable Tax paid through ITC (col 6.1 of Form B) Tax paid in cash (col 6.1 of Form 3B) December 2018 06/02/2019 5,46,976 0 5,46,976 January, 2019 11/04/2019 2,53,936 0 2,53,936 February, 2019 12/04/2019 2,42,436 5,400 2,37,036 March 2019 24/04/2019 2,52,802 0 2,52,802 The above details clearly suggest that the claim of the appellant that GST was paid through ITC is factually incorrect. Since, the appellant in the GSTR-3B has claimed that the amount of outstanding GST was paid in cash, therefore, it is imperative for the appellant to file the copies of relevant tax payme....
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....quent years. However, this fact was not mentioned before Assessing Officer / ld.CIT(A). Therefore, in the interest of justice, we set-aside the addition of Rs. 64,81,702/- to Assessing Officer for denovo adjudication. Accordingly, Ground No.5 raised by the Assessee is allowed for statistical purpose. Ground No.6 : 22. This Ground relates to Disallowance of Rs. 1,50,000/- under section 80C of the Income Tax Act. The relevant paragraph 57 of the ld.CIT(A)'s Order is reproduced here as under : "57. As regards to the claim of deduction on account of payment of principal amount of loan, I have considered the facts of the case and the submissions made by the appellant. The facts of the matter clearly suggest that the appellant has failed to file any certificate from the bank or loan sanction letter and he is trying to claim the deduction only on the basis of 'loan statement' issued by SBI. A perusal of said loan statement suggests that nowhere on this statement, it is mentioned that this pertains to any home loan account. Further the details of property for which the said loan was taken is also not mentioned. As per the provisions of the Act, deduction for repaymen....
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....dition. 4. On the facts and in the circumstances of the case and in law Ld. CIT has erred in making an addition of Rs. 3,03,218/- being sales promotion and travelling expenses made by appellant without appreciating the facts of the case. Your appellant prays for deletion of entire addition. 5. On the facts and in the circumstances of the case and in law Ld. CIT has erred in making a disallowance of Rs. 1,98,089/- being Bonus paid for AY 2019-20, by rejecting the appellant's contention. 6. On the facts and in the circumstances of the case and in law Ld. CIT has erred in making disallowance of Rs. 90,000/- being GST paid by invoking the provisions of section 438 of Income Tax Act, 1961. Your appellant contents that the GST payable of Rs. 90,000/-has been paid before the due date of filing of the return and therefore no disallowance is warranted. 7. On the facts and in the circumstances of the case and in law Ld. CIT has erred in making an addition of Rs. 1,165/- being interest received from Pune Peoples Co-operative bank without appreciating the facts of the case and by rejecting the appellant's submission. Your appellant prays for deletion....
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....5,71,290/- being unpaid employer's contribution towards ESIC. However, during the appellate proceedings for AY 2019-20, the appellant submitted that out of this amount, only an amount of Rs. 1,50,960/- is disallowable which stands added back in the computation of income. For remaining amount, the appellant has submitted that the said amount was paid in two installments i.e. Rs. 1,41,629/- on 11/04/2019 and Rs. 2,78,701/- on 08/04/2019. On the basis of the evidences furnished, the assessing officer in the remand report for AY 2019-20 has submitted that no disallowance on account of employer's contribution for ESIC is required for AY 2019-20. Accordingly, while deciding the appeal for AY 2019-20, the said addition of Rs. 5,71,290/- stands deleted by me. 67. The above discussion clearly suggests that since there is no disallowance on account of employer's contribution towards ESIC in AY 2019-20, the appellant's claim made before me shall amount to double deduction (once in AY 2019-20 and second time in the computation of income for AY 2020-21), which cannot be allowed. Since, the appellant has failed to substantiate that an amount of Rs. 6,75,012/- corresponds....
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....owance out of sales promotion and travel expenses." 31. No specific evidence has been filed by the Assessee before us. The Onus is on assessee to prove the genuineness of the expenditure. Assessee failed to prove genuineness of the expenditure. Assessee failed to prove that the said expenditure was incurred wholly and exclusively for the purpose of business of assessee. Accordingly, Ground No.3 raised by the assessee is dismissed. Ground No.4 : 32. This ground pertains to disallowance of Rs. 3,03,218/- on account of Sales Promotion and Travel Expenses. Our finding Ground No.3 in ITA No.1438/PUN/2024 shall apply mutatis-mutandis to this ground also. Accordingly, Ground No.4 raised by the Assessee is dismissed. Ground No.5 : 33. Paragraph no.74 of ld.CIT(A)'s Order is reproduced here as under : "74. Bonus & Exgratia Payble: The appellant claimed that the said amount stands disallowed in AY 2019-20 is factually incorrect. As discussed earlier in this order, no such disallowance was made by the appellant while filing the ITR. However, an addition of Rs. 1,98,089/- was made by the AO which has been deleted by me as the said amount was paid on 23/04/2019. As per t....
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....he paper book. According to the said Sale Deed, Assessee has sold land to Seema Harish Burange residing in Mumbai having PAN Number AIAPB2650D vide registered sale deed dated 25.06.2018. However, in the said agreement, it is vaguely mentioned that the purchaser has paid Rs. 11,55,000/- to Assessee on various dates. No specific dates or mode of transfer has been mentioned in the said agreement. In this case, the addition of Rs. 3,50,000/- has been made for A.Y.2020-21 as Assessee failed to explain the addition to Capital Account of Rs. 3,50,000/-. 38. Before us, ld.AR for the Assessee pleaded that said amount pertains to amount received from Seema Harish Burange on account of sale of land. We have already mentioned that the impugned sale deed is dated 25.06.2018 and dates of disbursement of amount of Rs. 11,55,000/- has not been mentioned anywhere. Therefore, it is presumed that the amount must have been received on or before date of registration i.e.25.06.2018. Therefore, there is no evidence filed by Assessee to prove the Capital Introduction of Rs. 3,50,000/- during A.Y.2020-21(F.Y.2019-20), accordingly, the addition is confirmed. Accordingly, Ground No.8 raised by the Assesse....