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2014 (7) TMI 700 - HC - VAT and Sales TaxValuation - works contract - deduction of expenditure - expenditure incurred for deployment of own machineries and equipments in execution of the works contract - expenditure in respect of the planning, designing and architect's fee / establishment expenditure - excess labour charges to be carried over - Held that:- when an assessee instead of taking the machinery and tools on hire, he purchases the machinery and tool and employs them in the execution of the works contract, he is entitled to deduction, which represents the labour charges, in substitution of which the machinery and tools were employed. The same cannot be denied to him. - assessing authority has to consider the material produced by the assessee on record keeping in mind that for deploying the same machinery and tools, if it had been taken on lease what is the hirecharges, which he should have paid and also take into consideration other circumstances, which may be relevant to the case on hand and determine the amount deductable under the aforesaid head. - Decided in favor of assessee. Deduction of establishment expenditure - Held that:- Whatever amount the assessee wants to claim under the aforesaid heads, he has to furnish the particulars and proof of the same and on considering the same, the assessng authority shall grant the benefit under the aforesaid provisions. Therefore, though the authorities cannot be found fault with for not granting the deduction under the aforesaid head on percentage basis, it would be just and proper to give an opportunity to the assessee to produce before the authorities the actual amount spent for the said on-going project with legal proof and then the assessing authority shall consider the same in accordance with law. - Decided in favor of assessee. Excess labour charges to be carried over - Held that:- assessee's claim under the head labour and other charges in a sum of ₹ 9,14,49,077 at page 7, clause (6) and the assessee was only claiming ₹ 5,76,30,391 for the current year and wanted the balance amount to be carried over to the subsequent year. - the facts were not clearly understood by the authorities and they denied the benefit wrongly - matter remanded back for fresh consideration. - Decided in favor of assessee.
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