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TMI Blog2017 (8) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, we set aside the order on this issue and confirm the finding of AO. This ground of Revenue’s appeal is allowed. Disallowance of the Labour Expenses - Held that:- CIT(A) has restricted the disallowance on adhoc basis at the one hand he has confirmed that the assessee has not keeping proper record and the Assessing Officer has made disallowance @ of 5% of the total labour expenses that appears to be justified. Therefore, we set aside the order of Ld. CIT(A) and restore the finding of the AO. This ground of Revenue’s appeal is allowed. Disallowance of expenses to Hire Charges and Crane Loader Expenses - Held that:- CIT(A) delete the addition in the basis, that Assessing Officer has not given specific instance. There is no dispute with regard to the fact that this expenditure was made on adhoc basis. Therefore, we do not see any reason into the finding of the Ld. CIT(A), same is hereby affirmed. This ground of Revenue’s appeal is dismissed. Disallowance of JCB (Hot Mix Plant) - Held that:- As regards Sh. Zakir Hussain being a creditor for outstanding Hot mix plant related expenses he had earlier denied any transaction with the assessee. Later on he failed to appear befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of total addition of ₹ 5,44,160/- made by disallowing JCB (Hot Mix Plant); ( 7) Deleting addition of ₹ 1,60,000/- made u/s 40A(3); ( 8) The appellant craves liberty to raise additional ground and to modify amend the ground of appeal at the time of hearing. 2. Facts in brief given rise to the present appeal are that, the case of the assessee was picked up for scrutiny assessment and the assessment was framed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) vide order dated 25.03.2013. While framing the assessment the Assessing Officer made addition on account of disallowance of stone expenses liability of ₹ 56,18,294/-. The Assessing Officer further made disallowance u/s 37 of the Act to ₹ 3,36,994/-. The Assessing Officer further made addition by invoking the provision of Section 40A(3) of the Act and also made disallowance on various expenses i.e. Gitti expenses, side Clearing and also made addition by disallowing the Granular Sub base expense and disallowance of repair maintenance of Road expenses, Labour expenses, out of Diesel Petrol expenses, Hire charges and crane loader its liability etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through assessee s submission and AO s findings. The main basis of addition in this case was that the AO had issued notices for appearance to the various supply creditors outstanding at the end of the year for expenses etc. as claimed by the assessee pertaining to the earlier years. The main suppliers were those of stone, granular sub-base and creditors in respect of hire charges crane loader expenses. Besides the above, the AO also made addition on account of current year s purchases on the adhoc basis. The AO had initially noticed that the assessee had produced only copy of ledger without any bills vouchers. The confirmations produced were required to be test checked through statements of some of these creditors. Out of the various persons whom the AO has listed out for examination under different categories like stone purchases, granular sub-base and hire charges, crane loader its liability, the assessee could not produce 2 persons namely Sh. Satya Narayan Nagar for stone purchase Sh. Dev Karan for GSB expense. Sh. Satyanarayan Nagar gave statements contradictory to the assessee s version and Dev Karan verified the statement as per the assessee s version. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng letter, the AO has not commented adversely on the findings required to be verified on account of additions made in the original order. Apparently the creditors named by the asessee in the original list were not bogus if on test check basis statement of the 9 persons who were examined by the AO vide remand proceedings are to be considered. On his part the assessee has discharged the onus cast upon him. Under the circumstances, except for those creditors who on cross examination by the AO either did not confirm the assessee s version or those who did not appear before the AO for examination viz. Sh. Ramdev Gurjar, the other creditors outstanding could be said to be verified on test check basis. Thus out of the addition made by the AO under the following heads- Stone Gitti purchase outstanding ₹ 56,18,294/- GSB expense outstanding ₹ 18,06,648/- Hire Charges Crane Loader Expenses outstanding ₹ 19,92,545/- The following amount as are attributable to the above person amounting to ₹ 1,98,458/- is treated as unexplained. Disallowance of ₹ 1,98,458/- is accordingly confirmed. The Balance outstanding amount of ₹ 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd no.3 , is against restricting the disallowance made out of the Labour Expenses. 7.1 Ld. Departmental Representatives supported the order of the Assessing Officer. 7.2 On the contrary, Ld. Counsel for the assessee supported the order of the Ld. CIT(A). 7.3 We have heard the rival contentions, the Ld. CIT(A) has restricted the disallowance on adhoc basis at the one hand he has confirmed that the assessee has not keeping proper record and the Assessing Officer has made disallowance @ of 5% of the total labour expenses that appears to be justified. Therefore, we set aside the order of Ld. CIT(A) and restore the finding of the AO. This ground of Revenue s appeal is allowed. 8. Ground no. 4 is against deletion of addition of ₹ 3,05,455/- made on account of disallowance on Sand Expenses. 8.1 Ld. D/R supported the order of the Assessing Officer. 8.2 Per contra Ld. Counsel for the assessee supported the order of the Ld. CIT(A). 8.3 We have heard the rival contentions, the Ld. CIT(A) decided the issue by following its order in respect of ground no. 2. Since ground no. 2 before Ld. CIT(A) is part of ground no. 1 in this appeal. Ground no. 1 has been dismissed. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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