TMI Blog2021 (4) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... as not possible. Even before us, no details of vouchers have been filed and only submission was made to the effect that complete ledger accounts alongwith supporting evidence has been filed before the A.O. for verification, however, we are of the view that in absence of complete supporting evidence, confirmation of expenses were not possible by the A.O.. As substantial amount of ₹ 1,96,69,519/- was made in cash, the A.O. was justified in making disallowance @ 10% of the said amount which comes to ₹ 19,66,951/- and added to the total income of the assessee. Since the genuineness of quantum of payment so made by the assessee was to be verified and the facts in support of cash payments so made, the same could not be verified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that the supported documents are not filed by the assessee, therefore, the same could not be verified. 4. Being aggrieved by the order of the A.O., the assessee carried the matter before the ld. CIT(A), who after considering the facts and submissions of both the parties, restricted the disallowance @ 5% instead of 10% made by the A.O. i.e. to the tune of ₹ 9,83,875/-. Against the order of the ld. CIT(A), the assessee has preferred the present appeal before the ITAT. 5. The only ground raised by the assessee relates to challenging the order of the ld. CIT(A) in upholding the action of the A.O. made on account of disallowance of job work charges. In this regard, the ld AR appearing on behalf of the assessee has reiterated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2:- It is admitted that for carrying out the work, labour is required and for that payment would have been made . [Paper Book Annexure 16-18] During the impugned assessment proceedings books of accounts along with vouchers, ledger copies were produced before the Ld AO but without pointing out any specific reason or rejecting books of accounts disallowed the job charges which is not only vague but based on mere assumption and surmises. Meaning thereby Ld AO has accepted 90% of the expenditure of this nature, there was no reason for restricting the claim to 90% alone and disallow 10%. Further submission that in the case of Commissioner of Income Tax Versus The Lakshmi Vilas Bank Ltd. Tax Case (Appeal) No. 896 of 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue's contention that the disallowance of 10% is warranted in the facts of the case. f. The order of Tribunal, being a pure factual issue the court rejected the appeal at the admission stage itself and in the result, the Tax Case (Appeal) was dismissed. [Paper Book Annexure 25-27] It is further submitted that the expenditure being incurred in the day to day business activity and is wholly and exclusively for the purpose of the business. Additions made by the Ld AO were without providing any specific reason or rejecting books of account, which was not only vague but based on mere assumption and surmises. In this regard further reliance is placed on the following decisions. 1. CIT, Delhi-7 vs. DLF Hilton Hotels, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20404.00 6. Interest on loan 145800.00 7. Job work paid 33265591.00 8. Petrol 71090.00 9. Printing Stationary 143691.00 10. Refreshment Exp. 2298.00 11. Repair Maintenance Expenses 282554.00 12. Staff Welfare 35000.00 13 Tour Travels 1950.00 14. Water 1298.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19,66,951/- was paid in cash. The genuineness of the quantum of payment was required to be verified by the A.O. and since the substantial amount was paid in cash. No any details of vouchers in support of cash payment was filed and only copy of ledger was filed which also reflects the details of cash payment made on a particular date but no supporting evidence to justify the payment was filed. Therefore, in absence of complete supporting evidence, verification of the expenses was not possible. Even before us, no details of vouchers have been filed and only submission was made to the effect that complete ledger accounts alongwith supporting evidence has been filed before the A.O. for verification, however, we are of the view that in absence o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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