TMI Blog2015 (4) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... f Hon’ble Gujarat High Court in the case of CIT vs. Sikandar Khan N.Tunvar(supra) and CIT vs. Crescent Export Syndicate (supra). In this view of the matter and bearing in mind the fact that neither there is any decision of any of Hon’ble High Court in favour of the assessee, on this issue, nor we do not have the benefit of any guidance of Hon’ble jurisdictional High Court on this issue, we are bound by the specific views expressed by Hon’ble Gujarat High Court and by the Hon’ble Calcutta High Court rather than a long drawn inference from the judgement of Hon’ble Allahabad High Court in the case of CIT vs. Vector Shipping Services Pvt. Ltd. (2013 (7) TMI 622 - ALLAHABAD HIGH COURT) . - Decided against assessee. Disallowances of certain ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleted. 4. So far as this grievance of the assessee is concerned, the relevant material facts are like this. The assessee is engaged in the business of civil construction. During the course of scrutiny assessment proceedings the A.O. noted that the assessee has made payments aggregating to ₹ 5,45,000/- to sub-contractors in respect of which no tax deductions have been made. It was on this undisputed fact the disallowance of ₹ 5,45,000/- was made under section 40(a)(ia) of the Income Tax Act, 1961. Aggrieved by the disallowance so made, the assessee carried the matter in appeal before the CIT(A). The CIT(A) observed that the fact of tax not having been deducted is undisputed and, therefore, the disallowance made by the A.O. c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Learned DR, on the other hand, relied upon the stand of the authorities below and submits that the issue regarding inapplicability of section 40(a)(ia) in respect of amounts paid during the year stands concluded against the assessee by Hon b le Gujarat High Court s judgement in the case of CIT vs. Sikandar Khan N. Tunvar, 357 ITR 312 and CIT vs. Crescent Export Syndicate, 216 Taxman 258. We are thus urged to confirm the disallowance and thus decline to interfere in the matter. 7. We have heard the rival contentions, perused the material on record and duly considered the factual matrix of the case as also the applicable legal positions. 8. While it is true that in the case of Gupta Overseas (supra), this Tribunal has held that An an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, by this school of thought, wholly inappropriate to proceed on the basis of the ratio of Merilyn Shipping Transport stands approved by the Hon'ble jurisdictional High Court particularly when that aspect of the matter was not even in challenge before Their Lordships. However, one of the demerits, if we can term it as a demerit, of this school of thought is that there is an inherent risk of being less than right in such a subjective decision, as in any cerebral pursuit . But, then, these observations were immediately followed by the observation that we are, however, saved of taking this call as, at this stage, it is useful to take note of the CBDT Circular No. 10/DV/2013 dated 16.12.2013 .. In view of this position it would perhap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat High Court and Hon ble Calcutta High Court was not available. Now that Hon ble High Courts have opined in favour of the revenue, the assesse can not derive any advantage from the said decision from a lower tier of the judicial hierarchy. For these reasons, we are unable to see any merits in the arguments of the ld. Counsel for the assessee and accordingly we reject the same. The disallowance of ₹ 5,45,000/- stands confirmed. Ground no.2, thus, dismissed. 10. In ground no.3, the assessee has raised the following grievance :- On the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals) erred in law and on facts and was not justified in confirming the adhoc disallowances out of certain expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) but without any success. The assessee is aggrieved and is thus in further appeal before us. 13. We have heard the rival contentions and perused the material on record. Barring disallowance of ₹ 6,000/- out of diesel and petrol and depreciation of ₹ 40,700/- made out of office expenses, which are made on the ground that these expenses represents personal expenses of partners of the firm, all other disallowances are made purely on surmise and conjectures. The fact that the vouchers are self-made does not indicate that the expenses are genuine. In small business and in real life salutation use of self-made vouchers are some time inevitable and therefore no disallowance can be made on the basis that that vouchers being se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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