Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (6) TMI 941 - ITAT MUMBAI

2015 (6) TMI 941 - ITAT MUMBAI - TMI - Disallowance u/s 40A(3) - Held that:- So far as disallowance on account of purchase of steel from Panvel office imprest account, telephone charges of direction and gardening and plantation, the same cannot be disallowed u/s 40A(3) as per the reasons given by the learned counsel. Accordingly, the assessee gets relief of ₹ 16,092/- and balance amount of ₹ 13,873/- is confirmed. - Decided partly in favour of assessee.

Disallowance of don .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r of assessee.

Estimate of net profit rate of 8% from the sale of development rights - Held that:- There is no allegation that the payment made by the assessee in the earlier years have been claimed by the assessee. These costs are always taken to work-in-progress. The assessee had spent money to made the payments to the members of co-operative housing to the CIDCO to acquire the rights to develop, then such a payment has to be allowed as cost. No proper basis has been given either by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t of 8% is deleted. - Decided in favour of assessee. - ITA No.7902/Mum/2010 - Dated:- 25-3-2015 - D Karunakar Rao And Amit Shukla JJ. For the Appellant : Dr P Daniel For the Respondent : Shri Neil Philip ORDER Per: Amit Shukla: This appeal has been filed by the Assessee against order dated 16.08.2010 passed by Ld. CIT (Appeal) -22, Mumbai for the quantum of assessment passed u/s 143(3) for the A.Y. 2003-04, vide which following ground have been raised:- "1. The learned CIT(A) erred in confi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

when all the details were submitted to the CIT(A)." 2. At the outset learned counsel, Dr. P. Daniel submitted that ground no. 1 is not pressed and accordingly, the same is dismissed as not pressed. 3. In Ground no. 2 the assessee has challenged the disallowance of ₹ 29,965/- made u/s 40A(3). The Assessing Officer noted that assessee has made cash payment exceeding ₹ 20,000/- for sums aggregating ₹ 3,16,666/-, relating to payment made to labourers, telephone charges, purch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

after examining nature of payment, quantified the disallowance in the following manner:- Nature & Particulars of expenditure Date of payment Amt. paid otherwise than by account payee cheque/draft 20% of such expenditure Rs. Purchase steel Panvel Imprest 13.06.02 22,000 4,400 Telephone charges 14.06.02 23,161 4,632 Gardening Plantation 20.07.02 35,300 7,060 Vehicle Expenses 24.12.03 20,206 4,041 Purchase steel Morbe 27.02.03 24,572 4,914 Purchase steel Panvel 07.01.03 24,590 4,918 Total 29,9 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

disallowance u/s 40A(3) should be made as per Rule 6DD. Regarding telephone charges, the submitted that the same pertained to telephone bill of Director and has not been claimed as expenditure by the assessee, therefore, no disallowance is called for. Regarding purchase of steel from Panvel office, he submitted that the same was on account of imprest account and in support, vouchers were submitted before the authorities below that there was no cash purchase but transfer from one office to other .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

elephone charges of direction and gardening and plantation, the same cannot be disallowed u/s 40A(3) as per the reasons given by the learned counsel. Accordingly, the assessee gets relief of ₹ 16,092/- and balance amount of ₹ 13,873/- is confirmed. Thus ground no. 2 is partly allowed. 6. Regarding Ground no. 3, relating to disallowance of ₹ 30,500/- out of donations, the learned counsel submitted that the assessee has not claimed any such claim of donation in the computation of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ghts. The brief facts are that, the assessee is engaged in the business of construction and during the year it has sold its development rights to another person for ₹ 70 lakhs. On the said project, the assessee had incurred cost/expenses of ₹ 68 lakhs and therefore, the assessee had only gained ₹ 2 lakhs from the said project. The assessing officer held that the expenditure of ₹ 68 lakhs is not fully supported by evidences and therefore, the profit disclosed by the assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g Officer held that, assessee could not prove the genuineness of the payment to these parties and accordingly, he estimated the net profit of 8%. In the first appellate proceedings, the Ld. CIT(A) had called for the remand report, contents of which are as under:-3 "As far as the sale of development rights are concerned the assessee has enclosed copies of development agreement of ₹ 70 lakhs and details of expenses of ₹ 68 lakhs. However, the details of expense enclosed are in res .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ar 94-95 and not paid by the assessee company. Therefore, disallowance made in the assessment order u/s 143(3) amounting to ₹ 3,60,000/- has been rightly made." The Ld. CIT(A) has confirmed the order action of the AO based on the remand report. The sole ground for rejecting the assessee s contention by the AO is that, the development rights and agreement has been executed by the assessee in January 2003, whereas the bills for payments attached are pertaining to year 1994-95 and 1995-9 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version