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2017 (8) TMI 659 - ITAT JAIPURAllowability of GSB Expenses - addition u/s 40(a)(ia) - allowable busniss expenditure - Held that:- Admittedly, these expenses were not disallowed by invoking the provision of section 40(a)(ia) by the Assessing Officer in the Assessment Order. Therefore, the Ld. CIT(A) has also not accepted the contention of the Assessing Officer and there is no ground by the revenue in this respect. Therefore, it can be inferred that the genuinity of expenditure is not doubted by the AO. Under these facts we do not see any reason to interfere into the order of the Ld. CIT(A), same is hereby affirmed. Ground no. 1 of the Revenue’s appeal is dismissed. Addition of the Stone Expenses - CIT-A restricted the addition - Held that:- Approach of the Ld. CIT(A) is self-contradictory, therefore, same cannot be sustained in view of the fact that the assessee has not placed any bills and vouchers for supporting its claim. Hence, he restores the finding of the AO on this issue. On the other hand he restricted the disallowance on adhoc basis. Therefore, we set aside the order on this issue and confirm the finding of AO. This ground of Revenue’s appeal is allowed. Disallowance of the Labour Expenses - Held that:- CIT(A) has restricted the disallowance on adhoc basis at the one hand he has confirmed that the assessee has not keeping proper record and the Assessing Officer has made disallowance @ of 5% of the total labour expenses that appears to be justified. Therefore, we set aside the order of Ld. CIT(A) and restore the finding of the AO. This ground of Revenue’s appeal is allowed. Disallowance of expenses to Hire Charges and Crane Loader Expenses - Held that:- CIT(A) delete the addition in the basis, that Assessing Officer has not given specific instance. There is no dispute with regard to the fact that this expenditure was made on adhoc basis. Therefore, we do not see any reason into the finding of the Ld. CIT(A), same is hereby affirmed. This ground of Revenue’s appeal is dismissed. Disallowance of JCB (Hot Mix Plant) - Held that:- As regards Sh. Zakir Hussain being a creditor for outstanding Hot mix plant related expenses he had earlier denied any transaction with the assessee. Later on he failed to appear before the AO in the second round (His affidavit was submitted by the assessee as replacement for his physical presence). Accordingly the amount shown against his name is also considered not verified & the balance addition is directed to be deleted. - Decided against revenue Invoking the provision of section 40A(3) - Held that:- We find that Ld. CIT(A) considered the statement of Shri Satya Narayan Nagar who stated in the revised statement that no payment was made exceeding to ₹ 20,000/-. The Revenue has not placed any contrary material. Since the Assessing Officer has invoked the provision of Section 40A(3) on the basis of the statement of Shri Satya Narayn Nagar who subsequently retracted the statement and made a fresh statement. Under these facts, we do not see any reason to interfere into the finding of the Ld. CIT(A), same is hereby affirmed. This ground of Revenue’s appeal is dismissed. Addition invoking the provision of section 40A(3)
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