2014 (1) TMI 652

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....as wrongly arbitrarily and against the law and facts of the case confirmed the addition on ad hoc basis out of cash payments made to various truck/tempo operators amounting to Rs.2,59,919/- being 10% of Rs.25,99,191/- even though complete particulars about truck/tempo operators were also made available during the course of appellate proceedings." 3. Briefly stated, the facts giving rise to this appeal are that the appellant is engaged in the business of supply of fresh vegetables and fruits to its clients, mainly, to the hotel industry. During the year under consideration, the appellant has disclosed gross loss of Rs.46,00,829/- against the gross profit of Rs.1,02,17,288 in the immediately preceding year. The case was selected for scrutiny....

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....l before the Commissioner of Income Tax(A) which was partly allowed by restricting the disallowance to 10% of cash payment i.e. 10% of Rs.25,99,191/- amounting to Rs.2,59,919/-. Now, the aggrieved assessee is again before this Tribunal in the second appeal with the sole ground as mentioned hereinabove. 5. We have heard rival arguments of both the parties and carefully considered the record placed before us. Ld. assessee's representative submitted that the assessee has neither made payments in excess of Rs.20,000 in a single payment of any person nor in excess of Rs.50,000 in aggregate to any person in violation of the provisions of section 194C of the Income Tax Act, 1961 (for short the Act). The AR further submitted that since none of the....

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....1.11.11 that the assessee has neither made payment in excess of Rs.20,000 in a single payment to any person nor in absence of Rs.50,000 in aggregate to any person in violation of the provisions of section 194C of the Act. The assessee has also specifically contended before the Commissioner of Income Tax(A) that the persons to whom truck/tempo hire charges had been paid were eligible for deduction of TDS under provisions of the Act, therefore, Form no. 15J has not been filed. We have also perused the balance sheets, Profit & loss account supported by details of truck and tempo charges paid by the assessee available on paper book from page no. 12 to 102 which reveals that maximum payment has been made in cash is below is Rs.1000 and the detai....

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.... the last para of the impugned order, the Commissioner of Income Tax(A) has observed that the assessee has not maintained its vouchers in a chronological manner and even the names of the drivers have been made available to the Assessing Officer. With this observation, the Commissioner of Income Tax(A) held that the possibility of certain element of expenditure being either inflated or not made out wholly and exclusively for personal purposes cannot be ruled out. The Commissioner of Income Tax(A) restricted the disallowance on ad hoc basis upto 10% of cash payments made to truck/tempo operators amounting to Rs. 2,59,919/- (being 10% of Rs.25,99,191/-). 9. The AR relied on the judgment of Hon'ble Jurisdictional High Court of Delhi in the cas....