TMI Blog2021 (1) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... ight of the amended section of 194C of the Act, his predecessor reached a conclusion that the transaction between the assessee and the supplier was that of sale and purchase and the same does not fall within the ambit of section 194C of the Act. Ld. CIT(A), therefore, observed that since there is no change in the facts and circumstances of the case nor has the learned Assessing Officer brought anything on record to prove that the agreement fell within the expanded scope of work contract envisaged under section 194C of the Act, explanation (iv) thereto with effect from 1/10/2009, there is no scope to deviate from the view taken by his predecessors for the assessment years 2006-07 to 2012-13. It is not the case of the Revenue that any cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )-5/0358/2015-16 in the case of M/s KS Hotels Private Limited ( the assessee ) for the assessment year 2013-14, Revenue preferred this appeal on the following two grounds, without 1 being general in nature. 1. On the facts and in the circumstances of the case, Ld. CIT(A) has erred in law in treating the contractual receipts of goods under section 194 C by treating them as regular sale by suppliers. 2. On the facts and circumstances of the case, Ld. CIT(A) has added in law in deleting unverifiable miscellaneous expenses. 2. Brief facts of the case, as could be culled out from the record, are that the assessee is engaged in the business of running a restaurants by the name of Zen and Tao in Connaught place which sell primarily Chines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the owner of the premises and has agreement with M/s Dewa enterprises for supply of Chinese food and in accordance with the agreement, food was supplied by charging VAT on the sale of food supplied, which in turn was sold to the customers of the assessee by charging VAT thereon by claiming the VAT input. On this ground, the assessee contended that the transaction between the two concerns is in the nature of purchase and sale inasmuch as the contract for supply of material/food is not a labour work contract as a envisaged under section 194C of the Act. 5. Ld. CIT(A) considered the contentions of the assessee in the light of the submissions made on behalf of the assessee. Further, Ld. CIT(A) found that a similar question had arisen in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legality or irregularity in such course adopted by the Ld. CIT(A). We accordingly decline to interfere with the same and dismiss this ground of appeal. 7. Second ground relates to the addition of ₹ 1, 04, 788/-towards and had disallowance of 10% of the miscellaneous expenses. According to the learned Assessing Officer the assessee had debited miscellaneous expenses of ₹ 10, 47, 885/-in P L account, but the larger part of it is not subject to verification due to lack of proper vouchers and, therefore, the disallowance of 1/10 of the expenses had to be made. Assessee argued before the Ld. CIT(A) that such disallowance was made without any basis of reason and that too without affording an opportunity to the assessee to explain t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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