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TMI Blog2016 (12) TMI 807X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the Assessing Officer under section 40(a)(ia) and confirmed by the ld. CIT(Appeals) is fully sustainable. - Decided against assessee Disallowance of business expenditure - Held that:- At the time of hearing before the Tribunal, nothing has been brought on record by the ld. counsel for the assessee to rebut or controvert the finding recorded by the Assessing Officer that part of the expenses claimed by the assessee under the relevant heads was not fully verifiable as they were merely supported by self-made vouchers. The disallowance on account of the involvement of unverifiable element in the said expenses thus was called for and find in agreement with the ld. CIT(Appeals) that the same as made by the Assessing Officer at 5% of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) - Decided in favour of assessee. - I.T .A. No. 1536/KOL/ 2014 - - - Dated:- 21-10-2016 - P.M. Jagtap, Accountant Member T.P. Kar, FCA, for the Assessee Arun Kanti Sinha, Addl. CIT, D.R., for the Department ORDER This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-XXX, Kolkata dated 31.03.2014. 2. The issue raised in Ground No. 1 relates to the disallowance of ₹ 13,31,842/- made by the Assessing Officer under section 40(a)(ia) and confirmed by the ld. CIT(Appeals). 3. The assessee in the present case is an individual, who is engaged in the busness of manufacturing of Hosiery goods under the name and style of his proprietary concern M/s. V.K. Textile. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturing activities, the provisions of section 194C are not applicable, I find it difficult to accept this contention. In the case of Khadim Shoes Pvt. Limited relied upon by the ld. counsel for the assessee, the assessee had purchased goods from other manufacturers after payment of sales tax, excise duty, etc. and in these facts and circumstances as involved in the said case, it was held by the Hon'ble Calcutta High Court that the provisions of section 194C were not attracted. As rightly pointed out by the ld. D.R., the payments in question were made by the assessee in the present case on account of labour charges and it is thus not a case of outsourcing of manufacturing activity as sought to be contended by the ld. counsel for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tribunal, nothing has been brought on record by the ld. counsel for the assessee to rebut or controvert the finding recorded by the Assessing Officer that part of the expenses claimed by the assessee under the relevant heads was not fully verifiable as they were merely supported by self-made vouchers. The disallowance on account of the involvement of unverifiable element in the said expenses thus was called for and I find myself in agreement with the ld. CIT(Appeals) that the same as made by the Assessing Officer at 5% of the total expenses was fair and reasonable. I, therefore, find no justifiable reason to interfere with the impugned order of the ld. CIT(Appeals) on this issue and dismiss Ground No. 2 of the assessee's appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of less number of employees, in my opinion, is not well founded. I, therefore, delete the disallowance made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on this issue and allow Ground No. 3 of the assessee's appeal. 11. The issue raised in Ground No. 4 relates to the disallowance of ₹ 90,338/- made by the Assessing Officer out of interest expenditure and confirmed by the ld.CIT(Appeals). 12. In the Profit and Loss Account filed along with his return of income, a sum of ₹ 2,34,540/- was debited by the assessee on account of interest paid on loan taken from Dena Bank and ICICI Bank. In this regard, it was noted by the Assessing Officer that a sum of ₹ 5,00,000/- was advanced by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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