TMI Blog2018 (11) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... not sufficient to discredit the version of the assessee. The payments were made to said party for plaster work which is directly related to business of the assessee and similar payments made to the said party in preceding year stood allowed by the AO itself in scrutiny assessment framed u/s 143(3) of the 1961 Act. Suspicion howsoever strong cannot take the place of proof is cardinal rule of jurisprudence. Thus, based on our above detailed discussions and reasoning, we are ordering for deletion of aforesaid additions to the tune of ₹ 9,15,043/- as was made by the AO and later confirmed by learned CIT(A). The assessee succeeds in this appeal. - Decided in favour of assessee. - I.T.A. No.1624/Mum/2017 - - - Dated:- 23-7-2018 - Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as ₹ 1,25,44,260/- . The case was selected for scrutiny for framing assessment u/s 143(3) of the Act. The expenses claimed by the assessee stood allowed by the AO , except expenses to the tune of ₹ 99,680/- towards telephone charges, conveyance Travelling expenses , Mess charges and Misc. Site expenses which expenses stood disallowed by the AO on ad-hoc basis owing to possibility of personal expenses . Further there was disallowance of expenditure to the tune of ₹ 9,15,043/- u/s 69C of the Income-tax Act,1961 with respect to the payments made by assessee to contractor M/s. K.G.N. Enterprises for plaster work done by this party for the assessee. During the course of assessment proceedings conducted by the AO u/s 143(3) r. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 04-11-2016 passed by learned CIT(A) , the assessee has filed an second appeal with the tribunal . It is vehemently and strenuously argued by learned counsel for the assessee that the said contractor namely K G N Enterprises did plaster work for the assessee and amount of ₹ 9,15,043/- was paid by crossed account payee cheque and bank statements were furnished before the authorities below which are also enclosed in the paper book filed with the tribunal. It was submitted by learned counsel for the assessee before the tribunal that income-tax was also deducted at source by the assessee on the payments of ₹ 9,15,043/- made to the said party namely K G N Enterprises in accordance with the applicable provisions of the 1961 Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue to trace the said party despite having completed details on their recordsas even data mining from current data base with Revenue was not done to trace/locate the said party. The assessment has been framed by the AO u/s. 143(3) of the 1961 Act It was submitted that in the preceding year also payments were made to the said party namely M/s K G N Enterprises which was allowed by the AO in assessment framed u/s. 143(3) of the Act , vide assessment order dated 11.02.2015 which is filed in the paper book filed with the tribunal. The copies of bank statements , TDS certificates for the preceding years are also enclosed in the paper book filed with the tribunal. Thus it was submitted that merely because the party could not be produced or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income filed with the Revenue stood allowed by the AO itself in scrutiny assessment framed u/s 143(3) of the 1961 Act. Coming back to the aforesaid disallowance of expenses to the tune of ₹ 9,15,043/-, the assessee could not furnish the current details/addresses as well whereabouts of this party nor the assessee could produce the said party namely K G N Enterprises before the AO . The assessee has submitted that the said party left the plaster work in between and whereabouts of the said party are not known. The assessee has however submitted Income-tax PAN as well name of proprietor as well address of the said party as was existing in its records. The ledger account of the said party in the books of accounts of the said party wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputer button. The said data mining could have easily helped revenue in locating the said party. The decision of Hon ble Supreme Court in the case of Orissa Corporation Private Limited(Supra) is relevant. We have observed that the assessee has earned revenue from operations of ₹ 19,48,64,426/- as per audited financial statements and income to the tune of ₹ 1,25,44,260/- was declared in the return of income filed with the Revenue. The expenses exceeding ₹ 18 crores as was claimed as deduction from income stood allowed by the AO in scrutiny assessment framed u/s 143(3). Keeping in view peculiar factual matrix of the case and material on record and also keeping in view smallness of the amount involved on the touchstone of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
