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TMI Blog2015 (2) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... by the respondent-assessee is accepted, the business nexus between the respondent-assessee and the sub-contractors cannot be disputed. The Assessing Officer also did not doubt the genuineness of the business relationship but the only question which was decided by the Assessing Officer was with regard to the quantum of the transaction. In our opinion, there was no reason given by the Assessing Officer to disallow 30% of the payment made by the respondent-assessee to the sub-contractors. Merely because in the earlier years the respondent-assessee had made payment to the labourers directly and for the assessment year in question they had shifted the mode of payment through the sub-contractors, cannot make the entire transaction doubtful. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... galore Port Trust (for brevity NMPT ). The dispute in the present appeal is for the assessment year 2006-07 in which year the assessee had declared its total income as ₹ 1,11,03,920/-. By the assessment order dated 28.11.2008, the Assessing Authority has disallowed 30% of the speed money and consequently a sum of ₹ 67,59,784/- was added to the income of the respondent-assessee. Challenging the said order, the respondent-assessee filed an appeal before the Commissioner of Income Tax (Appeals), Mangalore, which was allowed vide its order dated 21.10.2009. Being aggrieved, the revenue filed an appeal against the said order of the CIT (Appeals), which was dismissed by the Tribunal vide its order dated 30.07.2010. Aggrieved by the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed reliance on the decision of this Court in the case of Commissioner of Income Tax another vs- Konkan Marine Agencies (2009) 313 ITR 308 as the facts of the said case were different from the facts of the case on hand. 4. On the other hand, the learned counsel for the respondent-assessee has submitted the very fact that 70% of the payment made has been allowed by the Assessing Officer would be a admission on the part of the Department that the sub-contractors were carrying on the business of providing labourers to the respondent-assessee and hence the genuineness of the transaction cannot be doubted. It is contended that the question as to whether the sub-contractors had paid the amount to the labourers or not is not a question to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute the fact that more than 90% of the payment was made by the respondent-assessee to four sub-contractors by way of cheques and only an amount of less than 10% was paid through cash. It is also not disputed that TDS amount had been deducted and deposited by the respondent-assessee with the Department. It may be reiterated that the question as to whether further payment had been made by the sub-contractors to the labourers would be a question to be answered by the sub-contractors in their assessment proceedings. Merely because in the earlier years the respondent-assessee had made payment to the labourers directly and for the assessment year in question they had shifted the mode of payment through the sub-contractors, cannot make the enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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