TaxTMI 
TaxTMI 
2025 (2) TMI 1858
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.... 4) On the facts and in the circumstance of the case, the Ld. CIT(A) has erred in appreciating the fact that the not genuine transaction has been established on the basis of statements of creditors recovered dining search and post search investigation who denied of performing any work contract. 5) Any other ground that may be raised at the time of appellate proceedings." 3. Facts in Brief:- The assessee is a Partnership Firm carrying business of extraction of Manganese Ore minerals. The assessee is maintaining regular books of account and audited under section 44AB of the Income Tax Act, 1961 ("the Act"). A search and seizure action under section 132 of the Act was conducted at the Radhika Group of cases, Vishakhapatnam on 25/08/2021. Consequent upon search and seizure operation in Radhika Group, a survey was conducted on 25/08/2021, at the office premises of the assessee situated at Vizianagram. The assessee filed original return of income under section 139(1) of the Act on 01/11/2017, declaring total income of Rs. 3,52,80,278. The case was selected for complete scrutiny and an assessment order was passed under section 143(3) on 18/11/2019, determining total in....
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....act. During appellate proceedings, the appellant submitted that the addition u/s 69C is unjustified as the credit balance of Rs. 2,94,95,783/- in the account of various creditors is opening balance brought forward from earlier years and since the expenditure has not been incurred in the previous year relevant to AY under reference, no addition could have been made u/s 69C of IT Act. For this argument appellant has relied on following judgements- ITA No. 1078/Bang/2014 in Glen Williams v/s ACIT ITO Vs Rahul kantilal Shah ITA No. 6805/Mum/2018 Syntensia Network Security Vs. ITO (ITA No.2927/Mum/2017) The appellant further argued that even on merits these creditors are genuine, appellant has regular business transactions with them and they have been paid these amounts in the relevant previous year through banking channels. Appellant furnished various documents as mentioned in page 7 of the assessment order to support its claim of genuineness of the creditors. Appellant also submitted that major part of this credit balance has been paid in the relevant previous year and subsequent years. Appellant further submitted that the expenses....
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....n is not a matter which can the decided by considering the assessee's case along but it is a matter which has to be decided only if the creditors is before the concerned authority. In the absence of the creditor; it is not possible for the authority to come to a conclusion that the debt is barred and has become unenforceable. There may be circumstances which may enable the creditor to come with a proceeding for enforcement of the debt even after expiry of the normal period of limitation as provided in the Limitation Act." 11. In view of the above observations of Hon'ble Supreme Court, in the absence of creditor, it cannot be concluded by the Department that the debt is barred and has become unenforceable more particularly when the assessee is a limited company whose accounts are accessible to general-public. In the case of Sugaull Sugar Works (P.) Ltd. (supra) the assessee had credited the amount which was added to its income under s. 41(1) of the Act, but in the case of the assessee such amount has not even been credited to the P&L a/c. Thus, the case of the assessee is on sound footing than the case of the assessee in that case. Therefore, on the ground of expiry of ....
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....: Vizianagaram. As the mining activities are going on since 1944, the depth of the mine has reached over 250 Ft. To carry on such deep mining activities, huge teams of man-power in terms of labourers are required. The team of the management has appointed several labour contractors to carry out various mining activities. The work awarded to the labour contractor comprises of digging, carrying over burden, making path, stacking of ore and mutty, etc. The contractors are being appointed by the agent of the company who normally takes the stock situation of labour team, their financial condition and integrity of the contractor. After appointment, work is awarded to different contractors for different pits so as to calculate the work done by them. The agent personally supervises the work of each contractor and verifying the same directs the contractor to prepare his work bill. The work bill is being verified by the mining supervisor who transfers the said bill to the accounts department. After receiving the bills, the accounts department verifies the rates, etc. and after deducting "Tax at Source" makes payment to the contractor. The village Garividi is a very small place, and it is very....
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....ed by the decision of the Co-ordinate Bench of the Tribunal, ITAT, Nagpur Bench, wherein identical issues have been decided by this Court in Revenue's appeal in Dy. Commissioner of Income Tax v/s R.B.S.D. And F.N. Das, ITA no.234/Nag/2023, for assessment year 2020-21, vide order dated 30/10/2024. Accordingly, the learned Counsel prayed that the Revenue's appeal be dismissed on both counts. 8. We have heard the rival arguments, perused the material available on record and gone through the orders of the authorities below. While going through the material available on record, we are in agreement with the learned Counsel for the assessee that both the additions viz. Rs. 2,94,95,783, on account of opening balances of sundry creditors and addition of Rs. 1,90,13,453, on account of credits in sundry creditors accounts aggregating to the total amount of Rs. 4,85,09,236 made by the Assessing Officer, these issues came up before this Court which were decided in favour of the assessee and against the Revenue. The addition of Rs. 2,94,95,783, on account of opening balances of sundry creditors which is identical to the issue raised herein is covered by assessee's sister concern case in an ap....
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....em after due deduction of TDS. However, the ld. AO held that the appellant has not furnished copy of agreement for work contract nature and proof of services provided and hence, the expenses incurred for labour contractors is bogus and added it u/s 69C of the Act. During appellate proceedings the appellant submitted that the Appellant is carrying on mining activities since 1944. The mines are open cast manual mine situated at Garividi, Dist.: Vizianagaram. As the mining activities are going on since 1944, the depth of the mine has reached over 250 Ft. To carry on such deep mining activities, huge teams of man-power in terms of labourers are required. The team of the management has appointed several labour contractors to carry out various mining activities. The work awarded to the labour contractor comprises of digging, carrying over burden, making path, stacking of ore and mutty, etc. The contractors are being appointed by the agent of the company who normally takes the stock situation of labour team, their financial condition and integrity of the contractor. After appointment, work is awarded to different contractors for different pits so as to calculate the work done by ....
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....or has the Assessing Officer falsified these documents. It is also undisputed that the assessee has sold goods worth Rs. 55,15 crore during the relevant previous year. Without employing labourer through contractors such sales would not have been possible. The Assessing Officer has not doubted assessee's production and sales figures. The addition made by Assessing Officer is solely based on surmise and conjecture without bringing any corroborative evidence on record which cannot be sustained. 29. We have gone through order of the learned CIT(A) as well as details submitted before us. We also find that the assessee is carrying on mining activities since the year 1944. The mines are open cast manual mine situated at Garividi, Dist. Vizianagaram. As the mining activities are going on since 1944, the depth of the mine has reached over 250 FT to carry on such deep mining activities, huge teams of man-power in terms of labourers are required. The team of the management has appointed several labour contractors to carry out various mining activities. The work awarded to the labour contractor comprises of digging, carrying over burden, making path, stacking of ore and mutty, etc. Th....