9911796707
TMI Blog2017 (6) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2009-10 on 30.09.2009 declaring total income of Rs. 2,82,03,520/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) vide order dt.29.12.2011 and the total income was determined at Rs. 8,23,93,910/-. Aggrieved by the order of AO, assessee carried the matter before Ld. CIT(A), who vide order dt.25.02.2014 (in appeal No.PN/CIT(A)-II JCIT,R-4/245/2011-12) granted partial relief to the assessee. Aggrieved by the order of Ld. CIT(A), assessee is now in appeal before us and has raised the following grounds : "1. The learned CIT(A) erred in confirming addition of Rs. 6325473/- to the total income of the assessee, made by the AO on account of disallowance of labour charges on the ground that the appellant failed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f parties. In case of material purchases, assessee could furnish the confirmation of only 9 parties from whom the aggregate purchases of Rs. 1.56 crores were made as against the total material purchases of Rs. 30 crores. AO therefore concluded that assessee had failed to discharge its onus of proving the increase in expenses. He thereafter and after noting that the ratio of purchases of materials including labour to turnover had increased from 42.62% to 78.04% and in the absence of any cogent explanation, disallowed 10% of the total purchases (amounting to Rs. 3,06,63,538/-) and 20% of labour charges amounting to Rs. 1,68,48,239/-. Aggrieved by the order of AO, assessee carried the matter before Ld. CIT(A). Ld. CIT(A) deleted the addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch material or evidence so as to justify the payments made in cash though the appellant appear to have furnished the requisite details of the remaining expenses incurred under the head labor expenses and the Assessing Officer during the remand proceedings except for the cash payment of Rs. 63,25,474/- has accepted the contention of the appellant. Moreover the payments made by the appellant has been also subjected to TDS and the same also reflect the permanent account numbers of the various parties to whom payment have been made. However, with respect to the cash payments made by the appellant no such material evidence has been filed before the Assessing Officer either during the assessment or the remand proceedings so as to justify the cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Ayushakti Ayurved Pvt. Ltd., wherein the assessee had furnished complete details of the expenditure incurred. The Hon'ble ITAT in the case, relied upon by the appellant had allowed the appeal based on above fact, however in the present case no such facts exists as is evident from the material on record. It is settled that in order to claim an expenditure the burden of proving necessary fact in that connection is on the appellant which the appellant has failed to discharge. In view of the above fact out of the disallowances of Rs. 1,68,48,239/- the disallowance to the extent of Rs. 63,25,473/- made by the Assessing Officer is upheld and the remaining amount of Rs. 1,05,22,766/- (1,68,48,239 - 63,25,473) is directed to be delete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03,219/- and it was to meet the immediate requirements of the business. He further submitted that in all these cases the PAN numbers of the contractors were submitted by the assessee to the AO and in such a situation, the disallowance of cash payment should not have been made. With respect to the labour charges paid where PAN numbers are not available and the details of which are listed at page 70 and 71 of the paper book, he submitted that assessee had made aggregate payment of Rs. 23,32,911/- and the cash component was only to the extent of Rs. 2,99,682/- which was around just 30% of the total payments. He therefore submitted that considering the totality of facts, the assessee has discharged the onus cast upon it by giving the details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, it can be seen that the total payment has been made to 68 persons, the aggregate payment was Rs. 4,90,26,955/- which comprised of cash payment of Rs. 13,03,219/-. It is thus seen that the cash payment constituted around 3% of the total payments, the maximum and minimum cash payment to an individual person was Rs. 1,03,400/- and Rs. 400/- respectively. We find that assessee had furnished the PAN numbers of all these 68 persons to the AO but however AO did not make any inquiry about the receipt of payments by them from assessee. Further Revenue has not placed any material to demonstrate that the payment of expenses as claimed by the assessee is bogus. In such circumstances considering the totality of the aforesaid facts and the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
