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TMI Blog2021 (11) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) erred in deleting the disallowance made u/s 14A. 2. On the facts and in circumstances of the case, and in law, the CIT(A) erred in admitting additional evidence in contravention of Rule 46A in respect of bogus-subcontract expenditure and liquor purchases. 3. On the facts and in circumstances of the case, and in law, the CIT(A) erred in deleting the disallowance of expenditure in respect of bogus sub-contracts. 4. On the facts and in circumstances of the case, and in law, the CIT (A) erred in deleting the disallowance in respect of excess debit of liquor purchases. S. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. 6. The appellant craves leave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were separate legal entities and therefore, disallowed an amount of Rs. 1,77,16,522/- u/s 14A r.w.r 8D. 4.1 Before the CIT(A), the assessee filed written submission, in which, inter-alia stated that similar interest expenditure was allowed during the AYs 2009-10 and 2010-11, therefore, the same may be allowed during the AY under consideration. 4.2 The CIT(A) following his own order during the AYs 2009-10 and 2010-11, deleted the disallowance of Rs. 1,77,16,522/- made u/s 14A rwr 8D of the Act. 4.3 We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. On going through the financial statements of the assessee, we find that the assessment had mad investments an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a remand report on the additional evidence furnished by the Assessee before him. 5.2 Since the AO had not submitted remand report, the CIT(A) accepted the additional information furnished by the assessee and held that the parties are genuine and the payments were made to them in the form of cheques properly towards the works executed by the parties were genuine. He, therefore, concluded that the AO was not justified in holding that the expenses incurred in the name of M/s BSK were not genuine in nature and making addition of Rs. 14,39,96,963/- and hence, deleted the addition. 5.3 We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. The revenue has alleged t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were obtained in their respective 26AS. The AO observed that the total purchases on which TCS made was Rs. 1,25,92,944, but the purchase of liquor debited in the P&L Account was Rs. 1,68,99,896 and there was an excess of Rs. 43,06,952/-, which was added back to the total income. 6.1 During the appeal proceedings, the appellant furnished its submissions as under: "It is hereby brought to your kind notice that the appellant has all the relevant documents relating to the purchase of liquor. Assessing Officer has added an amount of Rs. 43,06,952jto the returned income treating it as an excess debit to P&L account with respect to liquor purchases. The Directors of the Company, possessing the licenses have purchased liquor on behalf of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , managing a resort and restaurant in the name of Celebrity Resorts. This club is having license from the Excise Department to purchase and sell liquor. The license is in the name of assessee company and also in the names of Director Sri.D.Vijaysen Reddy & Sri. Nandi Ravinder Reddy. The learned Assessing Officer has not raised any query in her show cause letter 18.03.2014, however, basing on the information provided in 26AS pertaining to the Directors,' D.Vijaysen Reddy and Nandi Ravinder Reddy, where in TCS details were provided, the learned Assessing Officer opined that there is an excess debit of purchases to an extent of Rs. 43,06,952/-, therefore, disallowed the same. 6.4 It was further stated that the AO has not considered the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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