Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 2062 - AT - Income TaxClaim of expenditure u/s. 57 - disallowing the Cost of Operation against which the appellant has earned income during the year under appeal - HELD THAT:- A perusal of the sub-contract as also the Invoice clearly shows that the area is an estimated quantity only. This being so, we find no reason to disallow the expenditure nor is there any evidence to show that the transaction entered into between the assessee and M/s.Coastal Projects Pvt. Ltd., was not genuine. In these circumstances, the addition as made by the AO in respect of the subcontracting of the contract work to M/s.Coastal Projects Pvt. Ltd. representing the expenses claimed towards cost of operation stands deleted. Disallowance of the expenditure towards interest disallowed - HELD THAT:- Respectfully following the decision of the Co-ordinate Bench of this Tribunal, the issue is restored to the file of the AO for re-adjudication [2018 (5) TMI 2061 - ITAT CHENNAI] Disallowing the Cost of Operation against which the appellant has earned income during the year under appeal - HELD THAT:- . A perusal of the Assessment Order clearly shows that the assessee did not have adequate opportunity to substantiate its claim before the AO. This being so, the issue in respect of the addition is restored to the file of the AO for re-adjudication. Here, it is to be kept in mind that an addition cannot be made merely on the basis of a statement recorded or a unsupported disclosure made by an assessee in the statement recorded in the course of a survey. Assessment is to be made on the basis of evidences. In regard to the issue of the disallowance of the interest expenditure u/s.57, it is noticed that the issue is squarely covered by the decision of the Co-ordinate Bench of this Tribunal in the case of the sister concern company M/s.Arohi Infrastructure Pvt. Ltd., and M/s.Aparti Constructions Pvt. Ltd., referred to supra, which is also been extracted earlier. In these circumstances, on identical findings, the issue in this appeal is restored to the file of the AO for re-adjudication after granting the assessee adequate opportunity to substantiate its case. Consequently, the appeal filed by the assessee is partly allowed for statistical purposes
|