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2009 (2) TMI 487 - HC - Income TaxAddition - The cash payment - tractor hire charges - summon to creditors - Held that: It is not possible for us to accept that the Assessing Officer could not have enforced the presence of Dharminder in the background of the fact that a substantial amount of the payment of Rs.5,96,220 as tractor charges was made by the respondent-assessee to the aforestated Dharminder by way of normal banking channel. There should therefore have been no difficulty either to ascertain his address or to summon him. - Decided in favor of assessee Deduction u/s 40A(2)(b) - truck charges were also paid by the respondent-assessee to M/s. Mehta Construction Company. Truck charges were paid to M/s. Mehta Construction Company at the rate of Rs. 80 and Rs. 70 per truck. The payment made by the respondent-assessee to M/s. Mehta Construction Company has been accepted by the Assessing Officer as a valid and genuine payment on tractor basis and not on monthly basis. In the background of the aforesaid factual position, it is also apparent that the respondent-assessee paid charges less than the charges paid to M/s. Mehta Construction Company for the same work to M/s. Satyen Enterprises. As noticed hereinabove, M/s. Satyen Enterprises was paid at the rate of Rs. 70 per truck. Thus viewed, it is not possible for us to accept that the Assessing Officer could have invoked section 40A(2)(b) of the Act. - Decided in favor of assessee Machinery Charges - The purchase of an excavator and to engage staff for its use and maintenance may or may not be a profitable / conceivable business venture. This would depend on the nature of contracts executed by an individual. The purchase of an excavator by itself is, in our view, an irrelevant consideration to determine the genuineness of the expenses incurred by the respondent-assessee. - - Decided in favor of assessee
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