2016 (8) TMI 160

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....itioner is a firm engaged in the business of civil construction, civil maintenance work and manpower supply. For the assessment year 2006-2007, the petitioner had filed return of income declaring total income of Rs. 28.91 lacs. Such return was taken in scrutiny by Assessing Officer. He passed order under section 143(3) of the Act on 29.12.2008 determining total income at Rs. 30.95 lacs. To reopen such assessment, the respondent issued impugned notice which as can be seen was done beyond a period of four years from the end of relevant assessment year. The Assessing Officer had recorded following reasons for issuing the notice : "Vide your legal representative's letter dtd. 23/01/2013, you have requested to furnish the reasons for reop....

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.... Nagesh Kumar Civil & Grass cutting Rs.3,69,750/- 16 N.P. Gupta Manpower supplier Rs.12,14,155/- 17 Nandlal Prajapati Construction and Maintenance Rs.5,02,540/- 18 Pankajjkumar Civil & Grass cutting Rs.2,70,000/- 19 RJ Virdiya Civil & Grass cutting Rs.2,50,000/- 20 Rajnish Enterprise Construction and Maintenance Rs.2,83,584/- 21 Rang Bahadur Manpower supplier Rs.3,16,210/- 22 Vinod Ray Civil & Grass cutting Rs.1,03,4138/-   2. The total payments of Rs. 1,19,72,036/- was made without deducting the tax at source. As such income to the extent of Rs. 1.19,72,036/- was required to be disallowed by invoking the provisions of section 40(a)(ia) si....

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....cate that only upon verification of the case records, it was seen by the Assessing Officer that the assessee had made certain payments pertaining to civil and grass cutting, construction and maintenance and for painting job etc. According to the Assessing Officer, these payments were subjected to deduction of tax at source which requirement the assessee had not complied. This figure of total payment of Rs. 1.03 crores, as per the reasons recorded, also emerge from the verification of the case records. In other words the fact that the assessee made these payments to various agencies was very much part of the record of the assessment. If that be so, we fail to see how the assessee can be blamed for nondisclosure of true and correct facts. ....

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....ry, wages, civil and grass cutting works expenses, the construction and maintenance expenditure and manpower supplied by the subcontractors besides other expenditures. In response to such query, the assessee supplied details of all such expenses with supporting evidence. This exchange of information between the assessee and the Assessing Officer though may not have direct bearing on the requirement of deducting tax at source in relation to such expenditure, undisputedly, these expenditures came pointedly under scrutiny of the Assessing Officer in connection with genuineness thereof. The fact that the Assessing Officer in his order of assessment dated 29.12.2008 made certain adhoc disallowances of Rs. 1,50,000/- towards such expenditure woul....