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2016 (5) TMI 525 - AT - Income TaxAddition on account of non-genuine/bogus/unexplained expenditure u/s 69C - Held that:- There is complete mismatch in between the claim made by the assessee towards sub-contract expenditure and the revenue shown by the sub contractor in their respective income-tax returns or from the statement on oath. The act of assessee looks to be suspicious in relation to various cash payments of ₹ 15,50,000/- during the year to both the sub-contractors wherein each transaction has been shown at ₹ 20,000/- even when assessee and both the sub-contractors were having account with the same bank and branch and no justification has been given by the assessee for doing so. Assessee has taken a plea that if the amount of ₹ 23,04,740/- is added to its income then the gross profit will be calculated at 54.54% which is not at all justifiable in the type of contract he has undertaken wherein the accrued G.P. element was 9.53% and 17.95% for contract work for block no.9C-1 and block 9A6/11 given by SSNNL for the total cost of contract at ₹ 83,14,999/- and ₹ 74,98,000/- respectively. In our view GP percentage which is just an estimation and the real profits of the assessee can be much higher depending upon the cost efficiency but certainly it cannot go to the extent of 54.54% as rightly submitted by the assessee but looking to the undisputed facts that the cash payments of ₹ 15,20,000/- and outstanding amount of 8,54,073/- total ₹ 23,74,073/- has not been shown as income/revenue by the two sub-contractors and work was completed. We, in order to meet the ends of justice, are of the view that 20% of ₹ 23,74,073/- working out at ₹ 4,74,815/- to be sustained as nongenuine expenses at the place of ₹ 23,74,073/- made by the Assessing Officer. - Decided partly in favour of assessee
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