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TMI Blog2023 (8) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals) were not justified in confirming the disallowance of Rs. 66000/- on account of rent payment by account payee cheque for the premises taken at the works-site for business purpose. The above disallowance may kindly be deleted. Ground No.2- On the facts and in the circumstances of the case, the learned CIT(Appeals) was not justified in confirming the disallowance of Rs. 1189800/- paid to Shri Vijay Sharma who stood guarantee to various petty and local suppliers of sand, BT metal, moram & other material. The above disallowance may kindly be deleted. Ground No.3- On the facts and in the circumstances of the case, the learned CIT(Appeals) was not justified in confirming an addition of Rs. 350000/- u/s 68 despite furnishing the copy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, travelling, printing, stationary, repairs (ii) Fabrication (iii) Labour and Wages (iv) Bricks, BT Metal, oil and paint, sand, moram, shuttering expenses etc. 4. Aggrieved by the order of the CIT(A), in sustaining the additions/disallowance made by the A.O., the assessee preferred the present appeal on the grounds mentioned above. Ground No. 1: Disallowance of Rs. 66,000/- claimed as expenses under the head Rent. 5. The Ld. Counsel for the assessee submitted that the assessee was undertaking his contract work at very far and remote area at where one Sh. Vijay Sharma was a 'prominent person' had provided the premises to the assessee with the undertaking that the amount for rent is to be paid to Sh. Vijay Sharma who will settle o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one Sh. Vijay Sharma was mentioned. The Ld. Counsel for the assessee submitted that the A.O made addition of Rs. 11,89,800/- towards the assessee income by not accepting the liability appearing in the balance sheet in respect of outstanding payment to be made to various vendors related with the purchases. As against the outstanding liability the name of Sh. Vijay Sharma was mentioned in the balance sheet of the Assessee. Further submitted that, the said Sh. Vijay Sharma in his statement and also in the affidavit has accepted that he stood guarantee for the assessee for purchasing of material from various vendors on credit basis. The Ld. Counsel further submitted that the A.O. without making any enquiry or verification from the vendors whose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y admitting the above facts which is placed that Page No. 23 of the paper book, therefore submitted that the disallowance of Rs. 11,89,800/- deserves to be deleted. 11. The Ld. Departmental Representative vehemently submitted that the said Sh. Vijay Sharma has specifically denied about the outstanding amount payable to various vendors appearing in the balance sheet of the assessee and the alleged affidavit produced by the assessee cannot be taken into account since the same was not before the A.O. therefore, submitted that the Ground No. 2 of the assessee is liable to be dismissed. 12. We have heard both the parties and perused the material available on record. The assessee himself shown the name of Sh. Vijay Sharma in the balance sheet s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid the aforesaid amount to the creditors in the subsequent years through cheques, we find no reason to sustain the addition made u/s 68 of the Act. Accordingly, Ground No. 3 of the assessee is allowed and the addition made by the A.O. of Rs. 3,50,000/- u/s 68 of the Act is hereby deleted. Ground NO. 4:- Disallowance of expenses of Rs. 20,00,000/-. 15. Ground No. 4 is regarding disallowance of Rs. 20, 00,000/- sustained by the CIT(A) out of the disallowance made by the A.O. at Rs. 45,56,000/- from various heads of expenses which are as under:- 1. Site expenses, adv. Exp., business exp., travelling, printing & stationery expenses and repair expenses Rs. 1,96,000 2. Fabrication expenses Rs. 60,000 3. Labour wages expenses Rs. 23,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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