The Commissioner Of Income-Tax, Delhi, ... vs The Jay Engineering Works Ltd. on 23 May, 1984
Commissioner of Income Tax vs. Jay Engineering Works Ltd (supra).
Considering the submissions of the appellant and the judgments cited above, I find
that in case of addition of Rs. 13612/- being the writing off or Sundry balances and debit
or Liquidated Damages Rs. 243045/-, the details thereof are definitely not in possession
of the appellant and the Assessing Officer ought to have relied on supplementary
evidence i.e. Auditors Report and Audited Accounts in this case. Similarly. in case of
Donation and Subscription Rs. 75298/-, the amount of Donation Rs.31200/- to "Calcutta
Mahanagar Trust & Others", 145, Sarat Bose Road, .Kolkata-700026 having PAN
DDDPP6061 P" is clearly stated in the Schedule 80G of Return or Income. As stated in
cases above, the detail of balance of amount Rs. 44098/- claimed by the appellant as
subscription to various trade chambers and Bodies for augmenting the business of the
appellant, is not available the reliance should have been placed on the Audited Accounts
and corresponding claims in earlier year. I also fully agree with the argument of the
appellant that "Concept of Materiality" should be considered in such cases vis-a-vis
volume of business. In view of the same I hereby direct the assessing officer to delete
the addition of Rs. 13612/- made on account of Sundry Balance W/off, Rs. 243045/- out
of Liquidated Damages and Rs. 44098/- out of total amount of Donation & Subscription
and also direct the Assessing Officer to allow deduction on Rs. 31200/- as available u/s
80G of the Act alter due verification from the details furnished in the return in respect
of the Donee."