9911796707
TMI Blog2012 (7) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... s & vouchers and copy of ledger account from supplier namely M/s Rathi Bars Ltd. and also that the notice u/s 133(6) issued to the above partly returned un-served. 2. That Ld CIT(A) grossly erred in restricting the addition made on account of labour charges and verifiable expenses not appreciating the fact that the addition was made by the Assessing Officer as the assessee had not substantiated its claim regarding the genuineness of the above expenses with necessary documentary evidence. 3. The appellant craves to add, amend or modify the grounds of appeal at any times. 2. The brief facts of the case are that return of income in this case was filed on 30.9.2008. Subsequently, the case was selected for scrutiny under CASS. The assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereof at the site. 4. The Ld AR relied upon in the case of CIT v. Goodlass Nerolac Paints Ltd. 188 ITR 1 (Bom) wherein it was held that Act does not seem to provide that if an information has not been furnished the claim for deduction can be disallowed. However, the Assessing Officer was not satisfied with the reply filed by the assessee and made an addition of Rs. 14,25,000/-. 5. Aggrieved, the assessee filed appeal with ld CIT(A) and submitted the following submissions:- 1) That the Assessing Officer issued summons u/s 133(6) to six suppliers including M/s Rathi Bar Ltd. Every one responded. However, letter to M/s Rathi Bars Ltd. Came back un-served with the remarks "party left". 2) The assessee had filed copy of ledger account of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. No adverse inference has been drawn against the appellant from the documents furnished during the course of assessment proceedings. In view of the facts and circumstances of the case, the addition of `.14,25,000/- made by the Assessing Officer is unjustified and is therefore deleted. Appeal on this ground is allowed." 7. The next addition was made on account of disallowance of labour expenses. During assessment proceedings, the assessee was asked to furnish the details of labour charges and wages on the basis of projects undertaken on various sites. The assessee had filed muster roll in respect of wage expenses of few sites. The Assessing Officer observed from the vouchers that muster roll was self generated and payments were made in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant are audited, the addition on this account cannot be warranted and held that addition be restricted to unverifiable purchases to the tune of Rs. 90,537/-. 13. Aggrieved, the revenue filed appeal before this Tribunal in respect of all the three deletions made by ld CIT(A). 14. The Ld DR argued before us that there is no direct proof to substantiate the purchases made by the assessee. More over bank statement submitted by the assessee to prove that payments have been made through cheques is a secondary proof and has no value in the absence of primary proof. He further argued that affidavit filed by the assessee regarding purchases is self attested and is of no use. Regarding second & third additions with respect to deletion of addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer has not considered the fact that out of six suppliers which were summoned u/s 133(6) only one supplier did not appear. 4) That the Assessing Officer has ignored the fact that operative results had in fact increased from 5.73% in preceding year to 6.9% during current year. 17. Keeping in view all these facts, we are of the view that Ld CIT(A) had rightly deleted the addition of Rs. 14,25,000/-. Regarding addition of Rs.3,00,000/-, the Assessing Officer had not made any specific finding to reach at the figure of disallowance. The addition is an ad hoc addition and while making the addition, the Assessing Officer had ignored the fact that percentage of labour charges to gross turnover had come down to 13.73% as against 16.99% in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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