TaxTMI 
TaxTMI 
2015 (9) TMI 1296
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....s and in law in confirming 50% of the total expenditure of Rs. 11,59,314 disallowed without any basis and in spite of his findings that "AO has not been able to prove conclusively that no work has been carried on the property owned by assessee company," which is based on surmises and conjectures, contrary to principles of natural justice, facts and provision of law as such the action of CIT(A) need to be undone and the disallowance of 50% of total expenditure confirmed by him needs to be deleted. 3. That the Commissioner of Income Tax (A)-III has erred on facts and in law in confirming the 50% adhoc disallowance of total expenditure of Rs. 11,59,314/- which is based on surmises and conjectures, contrary to principles of natural justice, facts and provision of law as such the action of CIT(A) need to be undone and the disallowance of 50% confirmed by him needs to be deleted. 4. That the order of ld. CIT(A) is against the law, facts, circumstances, natural justice and all the other principles and rules of law. 5. That appellant craves right to amend, add, delete or withdraw any of the ground of appeal either before or at the time of hearing of this appeal. ....
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....mce of summon and admiited the fact of supplying the Air conditioners but denied installation of the Air conditioners. The notice u/s 133(6) of the Act was sent to M/s Nutech Engg, Corporation , who claimed to have supplied plastic moulded furniture to the assessees, but same was returned unserved. The assessees were asked by the Assessing Officer to produce the said party, however no compliance was made. The Inspector of the office of Assessing officer could not locate the said party at the address given by the assessees. Subsequently, the said party i.e. M/s Nutech Engg. Corporation sent a letter to the Assessing Officer, confirming sale of goods thereafter Assessing Officer issued summon at the new address for confirming sale and installation of furniture, which was duly served but was not complied. The Assessing Officer also carried out enquires from the buyer of the property and the buyer declined to have handing over of any furniture, fittings and air conditioner to him by the assessees. After considering written explanations of the assessees on the show cause notice of proposed disallowance of share of improvement expenses in the hands of each company, the Asesssing Officer ....
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....cot Securities Pvt. ITA No. 359/Mum/2009 v) Om Prakash Joshi v. ITO 123 TTJ 246 (Jodh) (2009) vi) ACIT v. Intermedia Cable Communication (P.) Ltd. 146 TTJ 476 (Pune) vii) DCIT v. Sophisticated Marbles and Granites Industries 3 ITR (Trib) 220 (Del): viii) Rohini Builders 76 TTJ 521, confirmed by Gujarat High Court at 256 ITR 360 (Guj) and approved by Supreme Court at 254 ITR (St) 275 (SC) ix) CIT v. Dwarkadish Investment (P.) Ltd. 194 Taxman 43 (Del) x) CIT v. Bhawani Oil Mills Pvt. Ltd. (2011) 239 CTR 445 (Raj.). xi) Prem Kumar 161 Taxmann 50 (All). 9. On the other hand, the Ld. DR relied upon the order of the Ld. CIT(A) and stated that the action of the Ld. CIT(A) for disallowing 50% of the total expenditure is quite genuine and therefore, the same may be upheld. 10. I have heard the rival arguments and perused the records available on record. I find that the AO completed the assessment u/s. 143(3) of the I.T. Act, 1961 vide order dated 28.3.2013 and made the addition of Rs. 11,59,314/-. Aggrieved with the aforesaid order dated 28.3.2013, assessee preferred an appeal before the Ld. CIT(A), who vide impugned order dated 22.5.2014 has partly allowed the appea....
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....on procured from purchaser under Section 133(6) may have said that the no air conditioner were installed when they have purchased the property. As regards the amount paid to M/s Nutech Engg. Corporation, it is a fact that the summons were served on the said party, thus existence of this party is not in doubt. It is also a fact that the payment is made to them though banking channel. It is seen that when the summons are not complied there is no evidence as to what steps were taken by the AO to enforce the attendance or no penalty is levied for non-compliance by him. Thus, if the AO has no levied any penalty or he has not enforced the attendance than in that event without going into the root and investigating the matter further, in my view, solely relying on the basis of non attendance, AO cannot come to the conclusive proof that no repair work has been done. 6.3 Thus, taking into consideration the totaling of all the facts and evidences available on record, I am of the view that the AO has not been able to prove conclusively that no work has been carried on the property in question especially when the 3 parties are not the bogus one and they have confirmed having r....