9911796707
TMI Blog2024 (9) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... er referred to as Act) dated 29.12.2019 by the Assessing Officer (hereinafter referred to as ld. AO). 2. The Ground Nos. 1 & 9 raised by the assessee are general in nature and does not require any specific adjudication. 3. The Ground Nos. 2 to 7 raised by the assessee are challenging the confirmation of action of the ld. AO in disallowing the expenses on adhoc basis as under:- Consumable expenses : Rs. 7,32,518/- Wages and Salaries : Rs. 25,76,638/- Miscellaneous Expenses : Rs. 2,27,755/- Other Expenses : Rs. 1,49,831/- 4. We have heard the rival submissions and perused the materials available on record. The assessee company is engaged in the business of works contract / sale of plumbing / fire fighting and sanitary items. Wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to prove that the same were incurred wholly and exclusively for the purpose of business and there was no duplication of deduction claimed by the assessee. With regard to salary and wages, the assessee submitted that it had maintained all proper records along with documentary evidences for the same. The month wise employee wise details were enclosed by the assessee for the kind reference of the ld. NFAC, Delhi. With regard to expenses such as Works Contract Tax, Rent charges, business promotion expenses, consultancy expenses, conveyance and vehicle expenses, vehicle running expenses, insurance, newspapers & periodicals, repairs & maintenance and telephone expenses, the assessee submitted that it had maintained proper books of accounts, vo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the ld. AO to consider the correct figure of legal and professional charges, business promotion expenses to be considered only once, insurance amount, newspapers & periodicals. The ld. NFAC, Delhi also resorted to enhance the adhoc disallowance of other expenses from 10% to 15%. 6. At the outset, we find that the books of accounts were completely produced before the lower authorities by the assessee. The assessee had duly furnished the complete details of consumable expenses, works contract tax, site rent expenses, business promotion expenses, consultancy expenses, legal & professional expenses, conveyance expenses, labour charges paid, bonus/exgratia charges, repairs & maintenance , salary & wages paid before the lower authorities. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der, the learned AO prepared a tabulation of cash withdrawals, cash deposits, opening balance and closing cash balance from the period Sep 2015 to Dec 2015 and Sep 2016 to Dec 2016. Learned AO observed that assessee had maintained a huge cash balance in hand during the year under consideration and the same was not comparable with that of the immediately preceding year. Accordingly, the learned AO disbelieved the availability of cash balance with the assessee and proceed to treat the cash deposit in its bank of Rs. 39,80,500/- to have emanated from undisclosed sources. Learned AO further in para 3 of his order observed that cash balance available with the assessee as on 31.10.2016 was Rs. 46,96,634/-. With these observations, the learned AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 015 4,80,837 5,77,300 85,000 7,47,949 July 2015 7,47,949 30,42,000 24,52,723 Aug 2015 24,52,723 93,000 17,43,762 Sep 2015 17,43,762 19,93,500 31,000 21,25,867 Oct 2015 21,25,867 8,15,000 13,95,280 Nov 2015 (Till 08 Nov 2015) 13,95,280 5,50,000 18,43,281 to 30.11.2015 18,43,281 10,10,000 20,55,254 Dec 2015 20,55,254 5,32,000 1,000 17,34,392 Jan 2016 17,34,392 14,44,850 14,48,334 Feb 2016 14,48,334 18,50,000 20,49,515 Mar 2016 20,49,515 5,74,000 12,61,136 9. The assessee had also explained that he is engaged in the business of works contract and its labour oriented job wherein there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. As regards the cash deposits made in the bank account, we find that assessee is having sufficient cash balance in its kitty to explain the source for cash deposits made in the bank. Apart from that, the assessee had given the month wise details of the purchases, month wise details of sales for the year under consideration as well as immediately preceding year. There was no cash sale at all made by the assessee. These facts are evident from the table reproduced below:- MONTH CURRENT YEAR (2016-17) PRECEDING YEAR (2015-2016) PURCHASE SALES PURCHASE SALES Credit Cash Credit Cash Credit Cash Credlt Cash APRIL 1226322 21960 1245705 _ 1392788 12595 511124 * MAY 708346 - 8490651 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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