9911796707
TMI Blog2004 (12) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1,48,957 thus making a total additional income of Rs. 75,29,700 for additional tax as well as interest, etc. – Assessing Officer had taken into consideration that for the balance amount of Rs. 1,02,000 the debit notes were available and for the balance amount of Rs. 70,82,000 they could not be made available. He therefore rejected the contentions of the assessee and treated the said differential amount as income liable to tax - Held that the debit notes which are placed before us for the first time cannot be subjected to verification in this tax appeal and the said verification is required to be undertaken by the Assessing Officer. – matter remanded X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that there was a short account of contract receipts to the extent of Rs. 94,35,804 and he presumed that income chargeable to tax had escaped within the meaning of section 147 of the Act. Consequently the assessment was reopened by issuing notice under section 148 of the Act. After hearing the assessee, the Assessing Officer on considering the record, passed the assessment order on March 27, 2002 and held that the understatement of contract receipts came to Rs. 70,82,160 and the disallowance under section 40A(3) of the Act was worked out at Rs. 1,48,957 thus making a total additional income of Rs. 75,29,700 for additional tax as well as interest, etc. This order was challenged in appeal before the Commissioner of Income-tax (Appeals), Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed over to the assessee and utilised in the project under review. The Assessing Officer had taken into consideration that for the balance amount of Rs. 1,02,000 the debit notes were available and for the balance amount of Rs. 70,82,000 they could not be made available. He therefore rejected the contentions of the assessee and treated the said differential amount as income liable to tax. During the course of the arguments Mr. Porwal, learned counsel appearing for the assessee, on instructions had submitted that subsequently the contractee had furnished the debit notes and along with the affidavit, the list of debit notes amounting to Rs. 1,45,60,127 has been annexed thereto. It is further submitted that the assessee had received material wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h he was carrying on business of executing contracts and works on behalf of the Government. For the execution of the works undertaken by the contractor, certain materials such as cement, coal, items of steel etc. were supplied at the fixed rates specified in Schedule B to the contract by the Government for being used in the works. During the relevant assessment period the contractor had taken two contracts, one at Delhi and the other at Ambala. The contractor/assessee did not furnish any figures about the stores (material) received by it from the M.E.S. and when called upon to produce the relevant certificates in respect of such stores, the assessee failed to do so on the ground that the departments were not co-operating with it. Under cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er: "The materials listed in the above from 1 to 5 may be supplied to the contractor by the employer with the quoted basic rate separately. However, supply of the above materials, if not made available from the employer the same will be solely procured by the contractor in execution of the works, in confirmation of the given basic price of materials listed in 1 to 5 only." If the contractee who was a co-operative sugar factory failed to supply the relevant material, the contractor was compelled to buy of his own so as to complete the project. In addition the contractee had made available debit notes for an amount of Rs. 1,03,61,602 and the debit notes for the amount of Rs. 70,82,160 were not made available. Having regard to the style of m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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