TaxTMI 
TaxTMI 
2016 (10) TMI 806
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.... Officer -ACIT -10(2), Mumbai has erred in disallowing revenue expense of dismantling, loading, unloading and assembling charges Rs. 25,00,000/- paid by the appellant for movement of the crawler crane, by holding it to be non genuine expense." 3. The brief facts of the case are that the assessee is engaged in the business of hiring of cranes and equipments, including mobilization and demobilization. During the year the assessee has purchased a used crane namely Crane Kobelco - CKE 2500 from Janak Cranes in working condition at site with all its accessories for a consideration of Rs. 7.20 crores for which necessary invoice were submitted. The assessee Company has furnished a proof in the form of invoice raised on Janak Cranes for the hiring charges earned for the period from 8th Feb 2010 to 28th Feb 2010 and 1st March 2010 to 31st March 2010 by putting above referred crane into actual use. The assessee Company has claimed to have incurred an expenditure of Rs. 25,00,000/- towards dismantling, loading, unloading and assembling of the above said Crane from Janak Cranes. The assessee was asked by the AO to justify as to why above referred expenditure should not be treated as capital e....
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....t has to be transported on various trailers and trucks. The crane has to be dismantled into various parts. For this purpose the amount has to be paid to Janak Cranes for dismantling the crane into various parts and loading as well as unloading into trailers and assembling at other location of the same site of Maithan Power Project, Jharkhand . The assessee has submitted the following documents to substantiate its claim:- 1) Invoice of Janak Cranes for Rs. 27,57,500/- towards the charges. 2) Hiring Invoice on Janak Cranes for Feb & March 2010 raised by the assessee company 3) Hiring Invoice on Simplex Infrastructure Ltd from April 2010 onwards raised by the assessee company. 4) Work-order of Simplex Infrastructure Ltd in the assessee company's name for hiring of crane for same site dated 26.03.2010. 5) Work-order of Janak Cranes for same site earlier dated 22.05.2009. 6) Letters written by the assessee company & Janak Cranes for change of work-order dated 22.02.2010. 7) TDS Certificate issued by the assessee company for TDS deducted. 8) Ledger account of Janak Cranes for the financial year 2009-2010 & 2010-2011 reflecting the total transaction of bill, payment, TDS, Serv....
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.... of the Act, the assessee filed its first appeal before the ld. CIT(A). 5. Before the ld. CIT(A), the assessee reiterated its submission what were made before the A.O. The ld. CIT(A) observed that the assessee has purchased 250MT Capacity Kobelco CKE 2500 Crane from M/s. Janak Cranes at Maithon site Jharkhand which was in use at the site itself. The work order dated 22nd May, 2009 issued by M/s Simplex Infrastructures Limited indicate that the work connected to Maithon Power Project site, Jharkhand was awarded to M/s. Janak Cranes and the hire charges for the crawler was fixed at Rs. 16.5 lacs per month. The assessee claimed that the above crane was purchased on 5th February, 2010 along with all its accessories from Janak Cranes at Maithon Project site itself. The ld. CIT(A) observed from the invoice No. 078 that it was raised by Janak Cranes in the name of the assessee on 2.3.2010 and not on 5.02.2010 and hence the contention of the assessee that the crane was purchased in the month of February 2010 cannot be accepted in the absence of any concrete evidence. It was also observed that it was not possible to dismantle the crane within a period of two days and it was reassembled at ....
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....entire claim of payment made Rs . 25 lakhs was treated as non genuine and therefore the addition made by the AO was upheld/sustained by learned CIT(A) vide appellate orders dated 26-06-2014. 6. Aggrieved by the appellate order dated 26-06-2014 passed by the ld. CIT(A), the assessee is in appeal before the Tribunal. 7. Before the Tribunal, the ld. Counsel for the assessee submitted that the assessee acquired crane from Janak Cranes which was operating at Maithan Power Project at Jharkhand on running condition as on where basis along with the work order awarded by Simplex Infrastructure Limited for hiring of the said crane at Maithan Power Project, Jharkhand. M/s Janak Cranes had hired the said crane to M/s Simplex Infrastructure Ltd. who were contractors for Maithan Power Project at Jharkhand. It was submitted that the said crane was dismantled and transported to other location at the same site and assembled therein and the assessee paid charges of Rs. 25,00,000/- + service tax to Janak Cranes for said movement of crane . The payment was made by crossed account payee cheque on 19-01-2010 against which tax was also deducted at source and invoice was also received from Janak Cranes ....
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....50 MT capacity Crane Kobelco CKE 2500 Sr. No. JD 04 02 407 from Janak Cranes for Rs. 7,20,00,000/- vide invoice no. 078 dated 02-03-2010 of Janak Cranes(paper book/page 4) although payments were stated to be made through HDFC Bank Loan-3314541 on 2-3-2010 as per ledger account submitted(page 1/pb), wherein on perusal of the ledger account of Janak Cranes submitted by the assessee , the invoice depicted in ledger account is invoice no 76 dated 01-02- 2010 for Rs. 7,20,00,000/- for purchase of Kobelco Crawler Crane Sr. No. JD04-02407 with complete accessories. Thus , there is a discrepancy to that extent in the invoice date but be that it may be the assessee invoiced Janak Cranes for use of the said cranes w.e.f. 08-02-2010 and raised invoices for hiring of cranes in favour of Janak Cranes for the month of February/March 2010 as the work order issued by Simplex Infrastructure Limited was in favour of Janak Cranes which got replaced by issue of LOI in favour of the assessee only on 26-03-2010 and the assessee started invoicing Simplex Infrastructure Limited directly w.e.f. 01-04-2010 onwards. The background is that the said crane so acquired by the assessee was owned by Janak Cranes a....