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TMI Blog2020 (12) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... her evidence to support and substantiate the case of assessee on this issue, consider it fair and proper and in the interest of justice to set aside the impugned order of ld. CIT(A) on this issue and remit the matter to the file of Assessing Officer for deciding the same afresh after verifying the explanation of the assessee from the relevant record including especially the cash book and other evidences which the assessee is directed to produce. Ground No. 1 of the assessee's appeal is accordingly treated as allowed for statistical purposes. Disallowance of 15% of the wages - Addition sustained by the ld. CIT(A) to the extent of 7% - HELD THAT:- As rightly noted by CIT(A) in this regard, there was a mistake in the working made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 408/-. During the course of assessment proceedings, it was noticed by the Assessing Officer from the verification of bank statements of the assessee that certain payments were made in cash exceeding ₹ 20,000/- aggregating to ₹ 40,85,825/-. Since the said payments were made in cash in contravention of provisions of section 40A(3) of the Act, the assessee was called upon by the Assessing Officer to offer his explanation in the matter. In reply, it was submitted on behalf of the assessee that majority of the amounts were withdrawn from bank for day-today expenses and the same were duly reflected in the cash book. The assessee however could not produce any evidence in the form of cash book to support and substantiate the said explan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Assessing Officer that the assessee did not furnish cash book for verification during the remand proceedings and in the absence of the same, explanation offered by the assessee was not verifiable. Keeping in view this comment made by the Assessing Officer in the remand report, the ld. CIT(A) upheld the action of Assessing Officer in invoking the provisions of section 40A(3) of the Act and confirmed the disallowance of ₹ 8,17,165/- made by the Assessing Officer. 6. I have heard the arguments of both sides and perused the material available on record. It is observed that a detailed submission was filed by the assessee before the ld. CIT(A) in support of its case that the provisions of section 40A(3) of the Act were not applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urged that an opportunity may therefore, be afforded to the assessee by sending the matter back to the Assessing Officer. Although the ld. DR has initially raised an objection for sending the matter back to the Assessing Officer again for verification on the ground that sufficient opportunity was already offered to the assessee in this regard, he has finally submitted the matter can be sent back to the Assessing Officer for proper verification if the assessee undertakes to produce the cash book and other evidence to support and substantiate his explanation in the matter. Since the ld. counsel for the assessee has undertaken to produce the cash book and other evidence to support and substantiate the case of assessee on this issue, I consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntary evidence, working made by the Assessing Officer to compute the wages at 31.36% of the total receipts was wrong in as much as the increase in work-in-progress was not taken into consideration by the Assessing Officer while making the said working. According to the ld. CIT(A), the wages claimed by the assessee were actually 22.73% of the total receipts and increase in work-in-progress. Keeping in view this position, the ld. CIT(A) restricted the disallowance of 15% made by the Assessing Officer out of wages to 7%, thereby sustaining the disallowance of ₹ 4,51,913/- made by the Assessing Officer out of wages to ₹ 2,25,956/-. 11. I have heard the arguments of both sides on this issue and perused the material available on re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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