2014 (5) TMI 522

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....nt for the only project, without any basis of such percentage even though, he had confirmed in the statement made to the A. O. that he has received the payment without any reservation. (ii) (a) The CIT(A) failed to appreciate that Mr. Baghel had confirmed the payment of Rs. 51, 75, 224/- and suddenly stopped the work of Appellant on account of alleged irregularities by the Appellant. (b) The Appellant had even deducted the tax on the entire amount of payment to him but the TD Certificate was returned by him on account of the fact that he had not carried out work during the previous year of the assessment year. (c) As the Contractor had discontinued the work in A. Y. 2006-07, he had confirmed the payment received by him without givi....

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....d also directed that in case even after fresh examination proper bills of the work done by Harisharan Baghel(HB)were not available, the expenditure could be estimated after obtaining details of nature and quantum of work done by him in connection with the execution of the project. As per the Tribunal the assessee was following project complete method and all expenses incurred till the completion of the project had to be allowed in the year of completion. During the fresh proceedings, assessee was asked by the AO to submit the relevant bills of the work done by HB. In response to the directions of the AO, AR reported that at the time of survey in Feb. 2007, all papers were impounded by the members of the survey team. As decision of allowabil....

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.... have paid Rs. 54, 54, 441/- to HB as labour charges, that during the enquiry made under section 133A of the Act r. w. s. 131(1) of the Act sworn statement of the HB was recorded by the AO, that in his sworn statement HB confirmed that he had not worked for the assessee company in the year under appeal, that the statement of the assessee about impounding of papers by survey party was factually incorrect, that in the absence of any bills issued by HB the genuineness of the services rendered by him was not proved, that the AO could not verify any bills because no such bills were issued by HB, that the e AR had conceded that the HB had never issued the bills at all, that his predecessor had given a finding of the fact that the payments made by....