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TMI Blog2015 (7) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... at the conclusion. On careful perusal of the order passed by the Tribunal, we are of the opinion that the order of the Tribunal cannot be sustained inasmuch as the Tribunal has not applied its mind judiciously to the facts and circumstances of the case. In view of the same, interest of justice requires that the matter has to be re-dealt by the Income Tax Appellate Tribunal, Bangalore. By the said process, no prejudice would be caused to either of the parties. - ITA No. 450/2009 - - - Dated:- 1-6-2015 - Mohan M Shantanagoudar And Aravind Kumar,JJ. For the Petitioner : Sri Jeevan J Neeralgi, Standing Counsel For the Respondents : Sri S Parthasarathi, Adv., along with Smt Jinitha Chatterjee Sri V K Gurunathan, Advs JUDGME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were made through cheque to the sub-contractors. (c) Cash of ₹ 1,17,59,931/- was paid by the assessee to the gang leaders who had brought the workers privately as speed money. 3. The Assessing Officer allowed the contention of the assesee insofar as it relates to payment through cheque to the NMPT Union and sub-contractors. However, the Assessing Officer has disallowed the claim of the assessee to the extent of 20% in respect of cash payment to gang leaders as mentioned supra, which means the Assessing Authority allowed the claim of the assessee to the extent of 80%. Questioning the order passed by the Assessing Authority, the assessee filed appeal No.ITA/174/ CIT(A)/MNG/2006-07 before the Appellate Commissioner under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned supra. To verify the genuineness of the payments made by the assessee to the sub-contractors through cheques, summons under Section 131 of the Income Tax Act issued to all the sub-contractors mentioned in the assessment order and their statements recorded on oath by the Assessing Officer also came to be examined. It came to be noticed by the Appellate Commissioner that all the sub-contractors have stated that they have carried loading and unloading work at the port for the assessee by engaging private labour and they have further confirmed the bill. All these labour contractors are assessed to tax and they have filed returns belatedly declaring the above labour contract proceeds and offered income to tax under Section 44-AD of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors recorded by the Assessing Officer are of stereo type and same 18 questions were asked by the Assessing Officer to all the sub-contractors and all of them have given identical replies. Virtually, it means that stereo type statements are repeated by the Assessing Officer while considering the case on hand in respect of 18 subcontractors. It is also borne out from the records that the sub-contractors have not maintained any list of accounts in respect of labour contract works of the assessee. They have not maintained any records regarding the labourers engaged, the details like names and addresses of the workers etc., and the same are not available with the subcontractors. Even the list of accounts and other details are not available to kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot require engagement of huge labour force of the nature indicated by assessee. Most of the cargo handling process was mechanized and therefore the requirement of labour force was minimum. On these amongst other grounds, as set out in detail in his order, the appellate Commissioner disallowed the sum of ₹ 2,70,70,745/- which was allowed by the Assessing Officer. 7. The Appellate Tribunal while deciding the appeal, has casually proceeded to sustain the order passed by the Assessing Officer. None of the major points decided by the Appellate Commissioner are answered by the Tribunal while setting aside the order passed by the Appellate Commissioner. Though the order passed by the Tribunal runs to number of pages, the crux of the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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