2012 (12) TMI 1063

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....- specifically when the assessee failed to substantiate its claim of expenditure made u/s 40A(3) of the Income-tax Act, 1961. During hearing, we have heard Mrs.Sushma Singh, learned CIT-DR and Shri Suresh K.Gupta, learned counsel for the assessee. The crux of argument on behalf of the Revenue is that the necessary details for the claim of such expenditure was not furnished by the assessee, therefore, the Assessing Officer rightly made the addition. On the other hand, Shri Gupta, the learned counsel for the assessee defended the conclusion drawn in the impugned order by submitting that the necessary details for making such claim were very much filed by the assessee before the Assessing Officer. In nutshell, the impugned order on the issue un....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the exceptions provided in Rule 6DD(b) are applicable. Consequently, we do not find any infirmity in the conclusion drawn by the learned first appellate authority, therefore, the stand of the learned CIT(A) is affirmed. 3. The next ground pertains to restricting the disallowance on account of purchase of material to 3% by the learned CIT(A). The crux of argument on behalf of the Revenue is identical to the ground raised by further submitting that the learned Assessing Officer estimated ad-hoc disallowance to the tune of 15% of the expenses claimed in respect of purchase of gravel undersized/oversized, sand etc. It was also pleaded that huge expenditure was claimed by the assessee for which the necessary documents for incurring such expe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sideration. Another fact to be noted is that the disallowance has been made by the Assessing Officer on ad-hoc basis. Each item like supply of earth, gravels oversized/undersized has been dealt with independently, therefore, the observation of inflated consumption of the material has not been substantiated by the Assessing Officer by bringing any adverse material on record. The reason mentioned in the assessment order rejecting the purchases on ad-hoc basis is though on various counts but cash payment has not been specifically prohibited under the Act unless and until any contrary material is brought on record or the limit as laid down under the Act. The break-up of the expenditure for consumption of the material has been dealt with at page....