M/S STAR ENTERPRISE,HOOGHLY vs. ACIT-CIR-1, HOOGHLY

This appeal by assessee is arising out of order of CIT(A)-XXXVI, Kolkata vide Appeal No. 288/CIT(A)-XXXVI/Kol/Cir-1,HG/10-11 dated 15.01.2013. Assessment was framed by ACIT, Cir-1, Hooghly u/s. 144 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2008-09 vide his order dated 13.12.2010.

At the outset, Ld. Counsel for the assessee stated that he has raised the following three issues: “(i) Confirmation of addition of bogus purchases of Rs.34,99,180/-; (ii) Disallowance of earth filling material expenses for non-deduction of TDS by invoking the provisions of section 40(a)(ia) of the Act; (iii) disallowance of interest payment for non-deduction of TDS on old loans and payment to HDFC Bank amounting to Rs.5,672/- and Rs.21,096/- respectively.”

Ld. Counsel for the assessee took us to the order of CIT(A) who reproduced the submissions of the assessee and dismissed the first ground by cryptic order as under: “Even undersigned asked A/R to produce these parties to examine the genuineness of the transactions. In spite of opportunities on or before 28.12.12, 03.01.13, 11.01.13 and 15.01.13 these parties were not produced. Appellant failed to prove the genuineness of the transaction before the Assessing Officer as well as in appeal. Hence, addition made of Assessing Officer of Rs.34,99,188/- on account of bogus purchases, unaccounted investment in purchases and sundry creditors is sustained. Appeal on this ground is dismissed.” 4. The second issue he dismissed by non-speaking order as under: “Submission of the A/R, grounds of appeal, remand report, assessment order were duly considered. Earth filing is a contract between two parties. There can’t be sale/purchase for this job. Appellant failed to deduct TDS on earth filling charges. And AO was right in disallowing u/s. 40(a)(ia) of Income Tax Act. Appellant appeal is dismissed on this ground also.”