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TMI Blog2012 (7) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... d to Rs.1,00,000/- by ld. CIT(A). During the assessment proceedings the A.O. observed that assessee had debited an amount of Rs.11,67,266/- towards tractor hire charges, Rs.83,350/- towards labour expenses and Rs.5,38,800/- towards muster salary expenses. He further noticed that most of the expenses were made through cash and through voucher and only some vouchers were supported by bills. The A.O., therefore, was of the view that it is not proved that these expenses were incurred fully and exclusively for the business purpose and thus the A.O. made lump sum disallowance @ 20% of the total expenses that comes to Rs.3,57,885/-. 3. Before ld. CIT(A) the assessee's contention was that assessee was in the business of civil construction and civi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich cheque of Rs.2,00,000/- was issued in the name of the assessee on 26.6.2006. Thereafter there are two cash deposits of Rs.45,000 each on 14.07.2006 and 15.7.2006 and cheque of Rs.1,00,000/- was issued on 15.7.2006 to assessee. Again the cash deposit of Rs.45,000/- was made on 19.7.2006 and on the same day a cheque of same amount was issued to the assessee. From these details it was clear to the A.O. that the cheques were issued to assessee against cash deposits and the creditor was only earning gross salary of Rs.82,240/- for the year which amounts to less than Rs.7,000/- per month. The A.O. was, therefore, of the view that the creditor Shri Rajendra C. Shah cannot have so much of savings within a period of less than two months to adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,45,000/- from Shri Rajendra C. Shah. When the A.O. examined the creditworthiness of Shri Rajendra C. Shah, he found that Shri Rajendra C. Shah was a salaried person and during the year under appeal he earned gross salary of Rs.82,240/-. The A.O. further found that during the span of two months only Shri Rajendra C. Shah deposited Rs.3,45,000/- in cash in his bank account before issuing cheque of this amount to the assessee. Therefore, he observed that a person earning salary of Rs.82,240/- cannot save this much amount during a short span of two months. He, therefore, doubted the creditworthiness of the creditor and ignored the confirmation in respect of this credit filed by the assessee before him. Ld. CIT(A) on these facts, did not interf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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