TaxTMI 
TaxTMI 
2015 (7) TMI 536
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.... confirmation of the order dated 22.4.2008 passed by the Commissioner of Income Tax (Appeals) {'Appellate Commissioner' for short}. 2. The assessee is involved in Stevedoring operations of vessels and carrying on loading and unloading work at the port; assessee has engaged labour force from New Mangalore Port Trust ('NMPT' for short), registered cargo Handling Workers Administrative Wing (RCHWAW); the payment to the labour so engaged would be made by cheques to NMPT and in turn NMPT would disburse the wages to the workers. Case of the assessee is that as the registered labour force at NMPT did not agree to work beyond the limit fixed by them, the assessee had engaged the services of the private workers and had made paymen....
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....Commissioner enhanced the tax liability by setting aside the order passed by the Assessing Officer in respect of payments made to sub-contractors through cheque a sum of Rs. 2,70,70,745/-. However Appellate Commissioner affirmed the order passed by the Assessing Officer insofar as it relates to speed money paid to various gang leaders in cash. The order of the Appellate Commissioner is carried further by the assessee before the Income Tax Appellate Tribunal, Bangalore Bench 'A' in ITA No.947/Bang/08 by filing the appeal. The Income Tax Appellate Tribunal by its order dated 30.4.2009 allowed the appeal of the assessee in part and restricted the addition to the extent of Rs. 15,00,000/- as against Rs. 2,94,00,000/- made by the Appe....
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....s Officer, NMPT, Mangalore for getting reports. The details received from NMPT, Mangalore when compared with the details which the assessee has made available before the Appellate Commissioner fully tallied with each other in terms of date, item and quantity in metric tons. In other words, the entire cargo was handled by the assessee with the help of NMPT labour, for which assessee has paid a sum of Rs. 2,53,29,660/- by cheque. Hence, it appears a genuine doubt arose in the mind of the Appellate Commissioner as to whether the actual payments were made to the sub-contractors or not in the matter of engaging the workers and payment of money to them as speed money. The letter written by the assessee to the Appellate Commissioner discloses that....
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.... any evidence like vouchers, receipts in respect of payments made to the labourers etc., Regarding payment to individual labourers, no details are maintained. There is no written agreement between the assessee and the sub-contractors. The bills produced by the sub-contractors before the authorities are computer generated bills which are identical in respect of all the subcontractors and they did not have any service tax registration number, cell phone number etc., On perusal of their bank account records, it is observed by the Appellate Commissioner that when the payment by cheque was made, the amount was withdrawn by cash on the same day or on the next day. 6. In addition to the same, the Tribunal, on facts has found that the Appellate ....