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2013 (2) TMI 97 - HC - Income TaxDisallowance u/s 40A(2)(b) in respect of payment made to G.K. Engg. - ITAT deleted the addition - Held that:- Tribunal confirmed this view observing that the AO had accepted the same payments in earlier years and no efforts were made in this regard in the present year to bring any comparable case of fair market value. Thus it is to viewed that the view of Tribunal is unassailable who placed reliance on decision Upper India Publishing House (P.) Ltd. v. CIT [1978 (12) TMI 2 - SUPREME COURT] in which it is observed that question whether expenditure is excessive or unreasonable is essentially a question of fact. Such question is therefore, not required to be considered. Disallowance on account of site wise material consumption - ITAT deleted the addition - Held that:- Issue is clearly factual besides involving relatively small amount. Disallowance made on account of vehicle/diesel oil-grease expenses - ITAT deleted the addition - Held that:- Entire issue is based on facts & when the Tribunal and CIT(Appeals) correctly on appreciation of evidence opined that disallowance was not justified, no question of law arises Disallowance of machinery hire/repairs/spares expenses expenses - ITAT deleted the addition - Held that:- Tribunal confirmed the same observing that the Assessing Officer had not pointed out any defects in the vouchers and had made ad-hoc addition - no reason to entertain the question. Disallowance of Site & Rasoda Expenses - ITAT deleted the addition - Held that:- The expenses were supported by the evidence on record and the assessee had produced all the bills and vouchers which were verified by the Assessing Officer and no discrepancy was found. Addition of suppression of receipts - ITAT deleted the addition - Held that:- ssessee and M/s. K.M. Patel & Co. agreed to make investment in such proportion for carrying out construction work jointly undertaken by them. If out of their relation and robust undertaking, the receipts were divided in a certain ratio which was not strictly in proportion of 60:40 percentage of investment made by them respectively, the same cannot be a ground for any addition in hands of the assessee that too without any additional material of the assessee actually having received additional payments not reflected in the books Addition of labour expenses - ITAT deleted the addition - Held that:- All the contractors whose statements were recorded had admitted having done work for the assessee for which payments were made. Addition of transport contractors expenses - ITAT deleted the addition - Held that:- The assessee had established genuineness of the payments. It was found that the parties receiving the payment had rendered services to the assessee which work was genuine Disallowance of claim of expenditure for rendering transportation services to Shri Manoj K. Agrawal - ITAT deleted the addition - Held that:- the same party carried out work for the assessee in the preceding assessment year and payment made to him was found to be genuine. He is assessed to tax and all details have been noted with regard to the same party. Therefore, such party cannot be treated as non-genuine - appeal of revenue dismissed.
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