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The assessees, Shri Mehulkumar Somabhai Mevada and Shri Smit Dineshchandra Joshi, through two separate corrigendum applications both dated 24/07/2023, brought to our notice the following typographical mistakes in the order passed by the Tribunal in to 830/Mum/2023 & ITAs No.749 to 753/Mum/2023 dated 27/06/2023:
Page No. Typing error in the order To be corrected as 1 to 19 Name of the appellant - Shri To be changed as Shri Mehulkumar Somabhai Mehulkumar Sombhai Mevada Mevada 6 d he (second para last line) Instead of "d", "and" has to be added. Apittpetefit (second para second 8 This word has to be deleted removed line) 11 "11.11" (second para) It should be "11. 13" as per Assessment Order. The Q and Ans from Q 1 8 to Q28 are reproduced in Assessment Order of Shri Smit Dineshchandra Joshi. It should be Assessment order of Shri Mehul Somabhai Mevada 3 ITA 826 - 830/Mum/2023 & ITAs 749 to 753-Mum-2023 Shri Mehulkumar Sombhai Mevada & Shri Smit Dineshchandra Joshi 12 Q.24 first line "ttieAcouTSE" To be changed as "the course"
12 Q.26 (First Line) Ans. Shri To be changed as "Patel" Hitesh Pate! 13 Q.27 5%ofwmmJAsion (Q.27 To be Changed as "5% commission" last line) 15 VISIT NOTE (second Line) PF To be Changed as "SRVAPC049494000" Code No. SRVAPC049495000 15 VISIT NOTE (second Line) To be Changed as " M/s. Siddhi Vinayak Name of Estt M/s. Maruti Enterprises" Associates 15 Account No.502000004685 To be Changed as "502000004685141" 179 (last line) 17 Samabhai (Second para second To be Changed as "Somabhai" line) 17 Samabhai (Point No. 21 second To be Changed as "Somabhai" line) 18 Mr. Mehulkumar Mevada (first To be Changed as "Mr. Hitesh Patel" para third line) 18 Shri. Mehulkumar Samabhai To be Changed as "Shri Mehulkumar Somabhai Mevada (first para fifth line) Mevada"
We have perused the order of the Tribunal and found the contentions of the assessee to be correct and accordingly, we rectify the order of the Tribunal as under:-
4 ITA 826 - 830/Mum/2023 & ITAs 749 to 753-Mum-2023 Shri Mehulkumar Sombhai Mevada & Shri Smit Dineshchandra Joshi
The name of the assessee appearing in pages 1 to 19 as Shri Mehulkumar Sombhai Mevada may be read as Shri Mehulkumar Somabhai Mevada.
In page 6 the second paragraph shall be substituted with the following – It is, therefore, submitted that the reliance placed by the AO on the statement of Mr Hitesh Patel recorded on 14th February 2019 is not only incorrect but it is contrary to the facts on record after the said statement has been fully explained by Mr Hitesh Patel in his examination conducted by the AO on 8th February 2021 and thereafter the cross examination of Mr Hitesh Patel conducted by the advocate for CMCPL wherein he has categorically stated that many of the answers recorded in his statement on 14th February 2019 are not his answers and he had never given the said answers.
In page 8 second paragraph shall be substituted with the following – It is pertinent to mention that the assessee's books of accounts are subject to Tax Audit under section 44AB of the Act by a competent Chartered Accountant which are filed with the assessing officer. The assessee has filed his service tax returns based on these books of account only which were duly accepted by the Service Tax department. The provident fund authorities also have checked and verified the books of account and the relevant records of the assessee and have found them in order. Therefore, the conclusion of the AO, that he is not satisfied about the correctness and completeness of books of account is completely baseless as the AO has not been able to point out any defect or discrepancy in the said books of the assessee. In this respect the assessee relies on the decision of the Bombay High Court in the case of PCIT v. Swananda Properties Pvt. Ltd. (267 Taxman 429). It is further submitted that the amount of gross receipts from CMCPL amounting to Rs. 4,90,60,2357- is derived only from the books of account of the assessee 5 ITA 826 - 830/Mum/2023 & ITAs 749 to 753-Mum-2023 Shri Mehulkumar Sombhai Mevada & Shri Smit Dineshchandra Joshi
In page 11 paragraph 8 in the order shall be replaced with the following – 8. We notice that the Assessing Officer has also recorded a statement from the assessee on 08/02/2021 where the Assessing Officer raised various queries to the assessee with regard to the statements made by Shri Hitesh Patel. The relevant extract of the assessment order with queries raised and the reply by the assessee is extracted below:-
“11.13 During the course of recording statement on 08.02.2021 of Shri Mehul Mevada, various queries have been raised to the assessee with regard to various statements made by Shri Hitesh Patel (who exercises the Power of Attorney of the assessee and also running the proprietary concern of the assessee from the same premise), the relevant portion of which is as under:' Q.19 I am showing you the statement of Shri Hitesh Patel recorded on 14.02.2019, wherein he has admitted that he is not arranging any labour for M/S CLASSIC MARBLE CO. PVT LTD . Further, he has admitted that he has not supplied any labour and only done paper work. Please offer your comments ? Ans. Sir, I have supplied manpower to M/S CLASSIC MARBLE CO, PVT LTD Q.20 In reply to Q.no.24 to statement recorded on 14.02.2019, Shri Hitesh Patel admitted that he have Power of Attorney to sign the documents pertaining to M/s. Siddhi Vinayak Enterprises. Please explain ? Ans. Sir, I have given Power of Attorney to Shri Hitesh Patel to carry out work relating to Service Tax, PF, Shop and Establishment, Labour License etc. Q.21 In reply to Q.no.25 to statement recorded on 14.02.2019, Shri Hitesh Patel admitted that he received email from Rajeev Mevada regarding payment which was supposed to be made to labourers. I just used to sign the documents and send it back to M/S CLASSIC MARBLE CO. PVT LTD . Please explain ? Ans. The mail pertains to PF payment only Q.22 Please furnish the documents to substantiate the PF deduction and your contribution towards Provident Fund 6 ITA 826 - 830/Mum/2023 & ITAs 749 to 753-Mum-2023 Shri Mehulkumar Sombhai Mevada & Shri Smit Dineshchandra Joshi Ans. At present, I am not having details and the same will be submitted by tomorrow. Q.23 Please produce all the day-to-day attendance register, muster role, labour payment slip for all labour payment ? Ans. I am producing the attendance register and muster role register. I am submitting sample copies for record. Q.24 Please provide the Labour Register and Names of labour for whom you had deducted PF and match both of the above ? Ans. I will provide statement of the employees whose PF is deducted and their names appearing in attendance and muster roll. Q.25 During the course of survey action dated 14.02.2019 at your premise at B-131, Raghuveer Complex, Vapi, the survey team had found that no business activity was carried out from the place. Mrs. Juhi Patel in her statement has stated that no labour coming to this office and she had never heard the name of M/s. Siddhi Vinayak Enterprises operating from that premise. What you want to say about this ? Ans. The office was taken on rent from Hitesh V Patel. However, the activities of the labour supply etc was carried on at the factory premises of M/S CLASSIC MARBLE CO. PVT LTD and the workers were not required to come to the office. Moreover, at the time of survey, I had stopped the activity. All the PF compliances related to my firm were carried out by Shri Hitesh Patel from this office only. Q.26 Further, the proprietor of M/s. Varun Enterprises, Mr. Hitesh Patel during the course of survey action at your business premise also gave his statement that no business activities of M/s. Siddhi Vinayak Enterprises is carried out from your office premises. What you want to say about this ? Ans. I do not agree with his statement as it was not confronted to me. All the compliances were carried out from the office only and labour work was carried out from factory premises of M/S CLASSIC MARBLE CO.PVTLTD. Q.27 Mr. Hitesh Patel, in statement to Q.No.23, 24 & 25 stated that business activity of M/s. Siddhi Vinayak Enterprises is conducted from factory premise of M/s. M/S CLASSIC MARBLE CO. PVT LTD and they just used to sign the document and send it back to M/S CLASSIC MARBLE CO. PVT LTD . Please explain?
7 ITA 826 - 830/Mum/2023 & ITAs 749 to 753-Mum-2023 Shri Mehulkumar Sombhai Mevada & Shri Smit Dineshchandra Joshi Ans. I don't agree with the statement of Shri Hitesh Patel and I don't know why he has made such statement. Q.28 Mr. Hitesh Patel was having the Power of Attorney of M/s. Siddhi Vinayak Enterprises (i.e. your prop, concern). He clearly stated that you have never visited the premise and Hitesh Patel just signed the documents and cheques provided by M/s. M/S CLASSIC MARBLE CO. PVT LTD . Further, he also stated that he gets cheque from M/S CLASSIC MARBLE CO. PVT LTD , deposit in bank account and withdraw cash and return to the Accountant of M/S CLASSIC MARBLE CO. PVT LTD and get 5% of commission. What you want to say about this ? Ans. I don't agree with the statement of Shri Hitesh Patel and I don't know why he has made such statement. I have visited the office and met Shri Hitesh Patel also. Q.29 During the course of survey at the office premise of M/S CLASSIC MARBLE CO. PVT LTD , Naroli, blank letter head of M/s. Siddhi Vinayak Enterprises were found and accountant of M/S CLASSIC MARBLE CO. PVT LTD in his statement admitted that rubber stamp of M/s. Siddhi Vinayak Enterprises found from his cabin. What you want to say . about this? Ans. The letter head of M/s. Siddhi Vinayak Enterprises was given to the accountant of M/S CLASSIC MARBLE CO. PVT LTD for closing of bank account etc, as I had stopped my business activity.
In para 10 in page 15 after the wording "The copy of the visit note is given below" the following shall be substituted – 8 ITA 826 - 830/Mum/2023 & ITAs 749 to 753-Mum-2023 Shri Mehulkumar Sombhai Mevada & Shri Smit Dineshchandra Joshi MPLOYEES PROVIDENT FUND ORGANISATION (Ministry of Labour, Government of India) REGIONAL OFFICE CM/8/5 Snehdeep Commercial Complex, Gunjan, Vapi- 396 195 (Gujarat) Telephone Number0260) 2435123,2427976 Email:
VISIT NOTE Date of visit:27-01-2021 Date of document Preseat 01-02-2021 PF Code No. SRVAPC049494000 Name of Estt. M/s. Siddhi Vinayak Enterprises Name of E.O. – Samir Kumar Name of Proprietor / Authorised Signatory: Shri Hitesh Patel As per inspection assigned to the undersigned through Shram Suvidha Portal, I visited the establishment Siddhi Vinayak Enterprises situated at B-131, Raghvir Complex Opp V IA Cricket Counsel Valsad Gujarat for verification of compliance. The undersigned served a spot memo for requisiting of relevant records for EPF inspection purpose viz. Attendance register, wage register, copy of balance sheet, copy of digital signature, Form 5A and copy of cancelled cheque. The observation made on the records prescribed by the employer is as under:- Inspection was assigned on the basis of default in payment and found under category A/B in the default list. The establishment is labour supplier to principal employer M/s Classic Marble Company Pvt Ltd and after completion of work order, contract had terminated with effect from 31/03/2020. Establishment has submitted a letter regarding closure of PF Code for closure from 01/04/2020 and copies of surrender of labour license and completion of contract labour enclosed as proof of closure. PF challan summary submitted from May 2014 to Nov-2020, Copy of form 5A, and Cancelled Cheque enclosed. Thereafter, establishment has remitted min challan as applicable. Relevant records like attendance and wages register seen up to March 2020 and wages ledger in books of account seen. Based on the available records and facts available as well as on the basis of establishment’s request, it is hereby recommended to mark the establishment as closed in system. Establishment is directed to ensure that PF accumulations of members are transferred / withdrawn and est to duly help the members in same. The undersigned is a PF authority reserve the right for re-inspection / enquiry in case of any complaint an documentary evidence is brought to the office regarding any compliance / non compliance in future or the past. Bank details HDC Bank, Silvassa, Account No. 502000004685141. Recommended for levy of damages and interest under section 14B and 7Q for belated compliance. Sd/- 9 ITA 826 - 830/Mum/2023 & ITAs 749 to 753-Mum-2023 Shri Mehulkumar Sombhai Mevada & Shri Smit Dineshchandra Joshi