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TMI Blog2010 (2) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding material as well as paid for job work. The brief facts of the case are that assessee is a company engaged in the business of civil construction. It has filed its return of income on August 30, 2005 declaring total income at Rs. 14,77,440. On scrutiny of the assessee the learned Assessing Officer found that the assessee had made payment of Rs. 3,28,26,446 for job work, etc. He issued notice under section 133(6) to various parties in order of verify the genuineness of the purchases of raw materials and payments for job work. According to the Assessing Officer assessee had made payment of Rs. 9,23,932 to one Rajender Building Material Supplier for supply of building material. This concern did not respond to the notice of the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. With regard to Shri Abdul Wahid the assessee has contended that this man has worked as a carpenter and made wooden cupboard, etc., at EIL Ashraya CGHS Society. The assessee has produced bills received from this person and the evidence exhibiting the payment through an account payee cheque. It was informed to the Assessing Officer that this man is regularly assessed by the Income-tax Department. The assessee gave his permanent account number with the Income-tax Department. In respect of Shri Kamal Singh Verma again the assessee pointed out that total payment was made through an account payee cheque. He has carried out masonry work from building. Only a payment of Rs. 67,058 was made in cash because he ought to pay the amount to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re than Rs. 3 crores and the Assessing Officer has carved out only three small payments for doubting the genuineness of the assessee's claim. One of the payees is an income-tax assessee. His permanent account number was duly disclosed to the Assessing Officer. The mobile number of Shri Abdul Wahid is available on the bills. Similarly mobile number of Rajinder Building Material Supplier is also available. These aspects could have been verified by the Assessing Officer. The learned Departmental representative on the other hand relied upon the order of the Assessing Officer. He pointed out that it is the duty of the assessee to prove that expenses were incurred wholly and exclusively for the purpose of the business. We have duly consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of no response from these persons to his letter. It can be a strong circumstance in a given case but it is also important to keep in mind that an explanation or defence of an assessee based on a number of facts supported by evidence and circumstances required consideration whether the explanation is sound or not must be determined not by considering the weight to be attached to each single fact in isolation but by assessing the cumulative effect of all the facts in their setting as a whole. The Assessing Officer could have made a call on the mobile number of Rajinder Building Material Supplier as well as Shri Abdul Wahid which are available on their bills but no such efforts were made. Thus the reasoning assigned by the learned Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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