1.    M/s. Nitisha Silk mills Pvt. Ltd. Vs. ITO, I.T.A. No. 896/Ahd/2011, Date of pronouncement: 20.07.2012, ITAT- Ahmedabad

Addition u/s 68 cannot be made as unexplained cash credits on the ground that assessee has not keep the record of buyers to whom cash sale made.

It cannot be said that in the case of cash sales, the assessee is bound to keep record of the names and addresses of the buyers. The judgment of Hon’ble Bombay High Court cited by the Ld. A.R. rendered in the case of R B Gurnam Fatehchand vs ACIT as reported in 75 ITR 33 also supports the case of the assessee. In that case also, the assessee was not in a position to give the addresses of the customers to whom cash sales were made. Under these facts, it was held by the Hon’ble Bombay High Court that this cannot be the basis to reject the book results.

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2.   Punjab State Cooperative Federation of Housing Building Societies Ltd.  Vs. The DCIT, ITA No. 834/Chd/2011, Date of Pronouncement: 31 .05. 2012, ITAT- Chandigarh

Expense cannot be disallowed u/s 40(a)(ia) if TDS paid before I.T. Return Filing.

In the present case, the assessee has deducted tax at source out of payment made to contractor totaling Rs. 1,21,75,828/- which was deposited before 08.07.2008. The due date of filling return of income of the assessee was 30.09.2008. Following ratio laid down by Hon’ble Calcutta High Court in CIT Vs Virgin Creations (supra) and various Benches of the Tribunal we hold that once the tax has been deducted and deposited by the assessee before the due date of filling return of income, there is no merits in disallowing the expenditure relatable to such tax deducted at sources.

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