TaxTMI 
TaxTMI 
TaxTMI 
2017 (9) TMI 843
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....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. The amount paid by way of vehicle hire charges to the owner of vehicle was not subjecte....
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....in.] (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 preceding the financial year in which such sum is credited or paid to the account of the sub-contractor, shall be liable to deduct income-tax under ....
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....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 paying any sum to such sub-contractor shall be (4) The particulars referred to in sub-rule (3) shall be in From No. 15J. (4) The particulars referred to in sub-rule (3), shall be furnished. (i) to the Commissioner of Incom....
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....ingly, 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 us. 10. We have considered rival contentions and found from record that before the lower authorities, the assessee has submitted copies of the bank statement of Bharat Co Op bank Limited & Shamrao Vitthal Co Op bank. All the cash deposited in Shamrao Vitt....