TMI Blog2023 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... he view taken by the lower authorities uphold the disallowance made /sustained by them. Thus, the Ground of appeal No.1 raised by the assessee is dismissed in terms of the aforesaid observations. Disallowance of the assessee s claim for deduction of job work charges - Deduction claimed by the assessee to have been paid to his brother - HELD THAT:- As observed by the A.O, and, rightly so, as the aforesaid bill did not even mention the nature of job work, therefore, it did not inspire any confidence as regards the authenticity of the same. As the assessee had failed to place on record any documentary evidence which would support the authenticity of his claim of having paid genuine job work charges to his brother, viz. Shri Bharat Kumar Patel, therefore, the same had rightly been disallowed by the A.O. Also,concur with the view of the A.O that the aforesaid expenditure had been booked by the assessee only with an intent to suppress his profits. Accordingly, finding no reason to interfere with the view taken by the lower authorities, uphold the order of the CIT(Appeals) and sustain the disallowance - Thus, the Ground of appeal No.2 raised by the assessee is dismissed. Ad-hoc d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the matter is pending before ITAT) there was no reason or basis for disallowing said expenses of Rs.7,06,700/-. 3] Learned C.I.T.(A) erred in maintaining adhoc disallowance of 15% out of vehicle and telephone expenses etc. Expenditure was solely and exclusively for business purposes. Thus, disallowance of Rs.1,84,907/- out of total expenses of Rs.12,32,714/- is wholly unjustified. 4] Appellant craves leave to urge additional grounds at the time of hearing as may be necessary. 2. Succinctly stated, the assessee who is engaged in the business of manufacturing of HDPE/LDPE Pipes had e-filed his return of income for A.Y.2014-15 on 30.11.2014, declaring an income of Rs.15,23,320/- . Subsequently, the case of the assessee was selected for scrutiny assessment u/s.143(2) of the Act. 3. Assessment was, thereafter, framed by the A.O vide his order passed u/s. 143(3) dated 21.12.2016 at Rs. 33,63,370/- after, inter alia, making the following disallowances: Sr. No. Particulars Amount 1. Disallowance of commission paid to Shri Maganlal Patel ( person specified u/s.40A(2)(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers to bring to the assessee s shop for purchasing the goods. (b) No evidence has been produced to show that Shri Magan Lal Patel visited any place of the Mahasamund District for contacting the intended customers, neither any. travelling record or expenses if any incurred to bring the purchasers or any expenditure like entitlement etc. of the customers were furnished. No such details were either furnished by the assessee or the said payee Shri Magan Lal. (c) The ledger account or details maintained do not contain the names and description of the goods sold or supplied through Shri Magan Lal Patel. The bill is a single dated bill issued at the end of the year which also does not contain any details of work or supply orders executed. It simply says 2% commission - Rs.8,98,445/- . (d) The assessee's contention that Shri Magan Lal Patel is an experienced person and for utilization of his experience, commission was paid. This ground of the assessee is also not acceptable. Though Shri Magan Lal Patel is an' experienced person but in the business of the assessee he has not exerted himself nor done any work for boosting of the sales which could entitle him for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact rendered by him. Also, the fact that the single date bill that was issued at the end of the year merely makes a mention of the amount of commission, viz. Rs.8,98,445/- @ 2%, and there is no reference at all about the detail of works that were executed, as observed by the A.O, and, rightly so, proves to the hilt that the assessee in the garb of payment of commission to his father had in fact booked a bogus expenditure with an intent to suppress his income. I find that not only the assessee had failed to adduce any documentary evidence which would support his claim of having paid genuine commission to the aforementioned person, viz. Shri. Maganlal Patel for the services rendered by him, but in fact he had despite specific directions of the A.O avoided producing him for necessary examination on the pretext that he was away to Gujarat and the date when he would be back was not to his knowledge. On the basis of the aforesaid facts, I am of a strong conviction that the assesee only in the garb of his bogus claim of having paid commission to his father, viz. Shri Maganlal Patel had tried to suppress his profits. Accordingly, finding no infirmity in the view taken by the lower authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atives in the name of job work and accordingly a bill-lumpsum amountindefinite bill of Rs.7,06,700/- was obtained. (f) The assessee's contention that the payment was made through cheque would not alone made the payment genuine unless supported by corroborative documents. (g) Under the above facts and reasons, the claim of the assessee is found not acceptable and disallowed as such . 11. On appeal, the CIT(Appeals) finding no infirmity in the view taken by the A.O had upheld the aforesaid disallowance. 12. I have given a thoughtful consideration to the issue in hand, i.e., sustainability of the disallowance of job work charges of Rs.7,06,700/- (supra) that was claimed by the assessee to have been paid to his brother, viz. Shri Bharat Kumar Patel. As is discernible from the orders of the lower authorities, the assessee by failing to place on record any material/requisite details as regards the nature of job work that was done by the aforesaid person, viz. Shri Bharat Kumar Patel (supra), had failed to discharge the onus that was cast upon him u/s 37(1) of the Act. As such, the assessee had failed to prove his claim of having paid genuine job work charges to Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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