2017 (9) TMI 843

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in the circumstances of the case and in law, the learned CIT (A) erred in confirming the additions of Rs. 4,82,150/- treating the same as bogus expenses being 10% of total expenses of Rs. 48,21,503/-. 4. The Order passed by the learned CIT (A) is illegal, bad in law, ultra virus and contrary to the provisions of the law and facts and is passed without application of mind and in violation of the principles of natural justice on various issues as stated hereinabove. 5. The Appellant craves leave to add, to alter or to amend any of the ground of appeal mentioned hereinabove. 6. Each one of the above grounds of appeal is independent and without prejudice to each other. 3. Rival contentions have been heard and record perused. 4. Facts in brief are that the assessee is engaged as a Contractor working for BMC and undertakes job works for waste disposal and other related activities. The assessee had filed its return of income on 30th September, 2008 declaring total income of Rs. 10,72,550/-. 5. During the course of scrutiny assessment, AO observed that the assessee has debited vehicles hire charges paid, to Profit & Loss A/c and claimed as an expense. Th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(i) one per cent in case of advertising, (ii) in any other case two per cent, of such sum as income-tax on income comprised therein.] (2) Any person (being a contractor and not being an individual or a Hindu undivided family) responsible for paying any sum tc any resident (hereafter in this section referred to as the sub-contractor) in pursuance of a contract with the sub-contractor for carrying out, or for the supply of labour for carrying out, the whole or any part of the work undertaken fay the contractor or for supplying whether wholly or partly any labour which the contractor has undertaken to supply shall, at the time of credit of such sum to the account of the subcontractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax on income comprised therein: Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (k) of section 44AB during the financial year immediately prec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ime as may be prescribed, if such subcontractor is an individual who has not owned more than two goods carriages at any time during the previous year: Provided also that the person responsible for paying any sum as aforesaid to the subcontractor referred to in the second proviso shall furnish to the prescribed income-tax authority or the person authorised by it such particulars as may be prescribed in such form and within such time as may be prescribed; or} *. Rule 29-D in this regard reads as under: - Form of declaration under second proviso / third proviso to section 194C (3)(i)* 29D. (1) The declaration under the second proviso to clause (/) of sub-section (3) of 194C by a sub-contractor shall be in Form No. 15-1 and shall be verified in the manner indicated therein by such sub-contractor. (2) The declaration referred to in sub-rule (1) may be furnished to the contractor responsible or crediting any sum to the account of the sub-contractor before the event of being credited or paid to such sub-contractor. (3) The particulars under the third proviso to clause (i) of subsection (3) of section 194C to be furnished by a contractor responsible for ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fect in support of its contention was also filed before the CIT(A). The issue under consideration is directly covered by the decision of the Hon'ble Ahmedabad Tribunal in the case of Valibhai Khanbhai Mankad vs. DCIT (ITAT) dated 29th April 2011. Accordingly, we direct the AO to delete disallowance made u/s.40(a)(ia). 9. AO has also made addition in respect of the amount deposited in the bank account. Addition was made on the plea that during the Financial year relevant to A.Y.2008-09 as per ITS information, the assessee has deposited cash of Rs. 49,54,600/- in the Shamrao Vithal Co-operative Bank Ltd., 121/4845, Chembur on 31/03/2008. It was explained before the AO vide letter dated 22/12/2010 that an amount of Rs. 1,50,46,125/- was withdrawn from Bharat Co-Operative Bank Ltd., and deposited the amount of Rs. 54,11,500/- in Bharat Co-Operative Bank Ltd., and Rs. 49,54,600/- in Shamrao Vithal Co-operative Bank Ltd., Mumbai. However, AO did not accept assessee's contention and added the amount deposited in Shamrao Vithal Co-operative Bank Ltd., amounting to Rs. 49,54,600/-. By the impugned order, CIT(A) confirmed the action of the AO and the assessee is in further appeal before u....