TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 1187
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....0/- being sub-contract expenses paid to Mr. D.P. Bhansali, Mr. Shriniwas Muthe, Mr. Piyush Gogad & Mr. R.C. Gogad by disregarding appellants submission, statements recorded on oath and also the confirmations filed. The action of disallowance of sub-contract expenses without bringing on record any cogent material by the lower authorities is bad in law and same deserves to be struck down and addition made to total income may be cancelled." 3. Briefly stated relevant facts are that the assessee firm named M/s. P.P. Gogad is carrying out the business of Civil Contractor. During the year, the assessee undertook various contract works for Nashik Municipal Corporation and Tiruvananthapuram Municipal Corporation. Gross receipts of the assessee dur....
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.... has actually carried out the sub contract work shown to have allotted to these persons. However, expenditure has been booked in the name of these sub contractors. The cheques were issued to them and subsequently cash has been withdrawn. The assessee has thus, inflated its expenditure by claiming expenditure in the name of sub contractors. Thus, the sub contract work shown in the name of above persons is bogus and not genuine." 4. Thus, the AO came to the conclusion that the above sub-contract expenses are bogus and added the same to the total income of the assessee 5. During the First Appellate proceedings, assessee could not improve the case as held in Para 9 of the CIT(A). The additions made by the AO are eventually confirmed. In effec....
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.... against the assessee in case of sub-contractor named Shri Shriniwas Muthe. He read out the reasons given from Sl.No. 1 to 11 of Para 6.1.3. For the sake of completeness the same are extracted as under : "1. Shri Shriniwas Muthe was employed as technical assistant at Maharashtra Jeevan Pradhikaran and now he is retired from the service. 2. He is 66 years old and staying at Plot No.14, Prabhat Nagar, Mhasrul, Nashik. 3. He is educated upto 10th Standard only and knows and understands only Marathi language. 4. He has visited Trivendrum only once in the year 2009 before the start of alleged work done by him. It is his statement only and this fact is not verifiable whether he has actually visited Trivendrum or not. There is no evidence prod....
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....,130/-. 9. On the other hand, Ld. Departmental Representative for the Revenue heavily relied on the orders of the AO and the CIT(A). 10. We heard both the parties and perused the orders of the Revenue and the paper book filed before us. AO made the above addition in the assessment for want of evidences in support of the execution of the sub- contract works by the 4 sub-contractors for the assessee. Otherwise, there is no dispute on the fact that the payments are made by the assessee to the sub-contractors after making TDS as per the provisions of section 194C of the Act. There is no evidence to demonstrate that the payments made to the sub-contractors are returned to the assessee in any form. In this regard, no incriminating material is b....