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TMI Blog2011 (1) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... workers were required to work day and night on shore – Held that:- Commissioner (Appeals) have recorded findings of fact to the effect that the expenses had, in fact, been incurred by the assessee and considering the nature of expenses incurred, restricted the same to 1/3 rd of the amount claimed - order of the Tribunal, insofar as the first ground is concerned, being based upon findings of fact does not give rise to any question of law, appeal is, therefore, dismissed Whether Tribunal is right in law and on facts in upholding the findings of the CIT(A), restricting the addition made by the Assessing Officer in respect of balances for which no confirmation/details/evidences were furnished by the assessee - activity of the assessee was mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and circumstances of the case, the Appellate Tribunal is right in law and on facts in upholding the findings of the CIT(A), restricting the addition of Rs.87,46,548/- to Rs.1,22,040/- made by the Assessing Officer in respect of balances for which no confirmation/details/evidences were furnished by the assessee?' "Whether on the facts and circumstances of the case, the Appellate Tribunal is right in law and on facts in upholding the findings of the CIT(A), who had held that in respect of various irregularities, the Assessing Officer ought to have taken appropriate action against the defaulters, which is against the maxim of law, which casts an onus upon the assessee to substantiate its claim of deductions/disallowances?" 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered the submission and rejoinder to the AO's comments made on behalf of the appellant. It is contended by the appellant that the AO's allegation that there are no vouchers for the expenses is not correct. In this connection the appellant has furnished the vouchers during the present proceedings for perusal. No doubt these vouchers are signed by supervisors, that apart, it cannot be said that the expenses are not vouched. It is also matter of fact that the appellants business of doing work at mid sea where it is required to spent amount on supply of food etc. to the workers so as to get better result in a shorter time. At the same time the workers employed on such job cannot be expected either to go home and get their food requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) was accordingly of the view that a businessman may incur an expenditure which he is under no legal obligation to make but if he does so as a measure of commercial expediency, it must be allowed under section 37 of the Act as legitimate business expenditure. However, considering the nature of expenditure, the Commissioner (Appeals) has restricted the disallowance to one-third. 6. The Tribunal in the impugned order has recorded that if the expenses are extended for the purpose of business of the assessee, the entertainment expenses are allowable under section 37 of the Act. The Tribunal, after appreciating the evidence on record found that the expenses had been incurred during the business hours at mid-sea for the employees; the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to support the business. The assessee had submitted details of purchases, creditors, debtors etc. The Assessing Officer issued notices under section 133(6) of the Act to the said parties. Out of notices issued to 12 parties, five did not respond and the remaining merely confirmed the balances. The Assessing Officer called for details from the various suppliers for the genuineness of the transactions and made the addition as no details/confirmations were furnished in respect of 12 parties. In most of the cases replies were received. In the assessee's appeal, the Commissioner (Appeals) called for a remand report and after considering the remand report, found that the parties were duly served and as such, it was established that the parties w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of Rs.78,946 was not accounted for by the assessee, and accordingly, to the extent of Rs.1,22,040/- the addition was upheld whereas the remaining addition of Rs.86,24,508/- came to be deleted. In revenue's appeal, the Tribunal upheld the order made by Commissioner (Appeals). 9. As can be seen from the impugned order of the Tribunal, the Tribunal has noted that the business activity of the assessee was mainly labour oriented and various outside agencies were engaged to support the business. During the year, the Assessing Officer had called for details from various suppliers on the genuineness of the transactions. In most of the cases, notice has been duly served which proved the identity of the supplier. It was noted that the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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