AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (9) TMI 775
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....and circumstances of the case, the Ld. CIT(A) has erred in confirming the disallowance of Rs. 44,38,520/- made by the AO. 2. The CIT(A) has failed to appreciate that the expenses were genuine. 3. The CIT(A) has failed to appreciate that the appellant has discharged its onus of proving the genuineness of the expenditure. 3. Briefly stated, the facts of the case are that the assessee/appellant filed its return of income for the assessment year (AY) 2008-09 on 30.09.2008 declaring total income of Rs. 24,48,570/-. The appellant is an association of persons formed for executing the specific project of development of interstate border check post in the state of Madhya Pradesh. During the course of assessment proceedings, the Assessing Offic....
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....failed to discharge the onus cast on it, the AO made a disallowance of Rs. 44,38,520/-. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) called for a remand report from the AO. After receipt of the said report from the AO, he furnished a copy of it to the assessee for its comment. The assessee filed a reply before him on 25.11.2016. The Ld. CIT(A) observed that (i) all the correspondence produced by the assessee is the one written by the assessee itself and there is no document from the side of SIPL, (ii) there is no contract available with the assessee containing the terms of the contract, the exact specifications of the project, the quality of the project, (iii) the assessee has prod....
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....AO. 5. Before us, Ld. counsel of the assessee files a Paper Book (P/B) containing (i) Work Order for construction of barrier complex received from Madhya Pradesh Government, (ii) Letter of Acceptance for civil construction works given to Shanti Infraways Pvt. Ltd., (iii) Running Bills received from M/s Shanti Infraways Pvt. Ltd., (iv) Cancellation of Civil Works Order given to M/s Shanti Infraways Pvt. Ltd., (v) Details of TDS paid for the financial year 2007-08, (vi) Work completion certificate, (vii) Copy of Written submission before the ITO 31(2)(2) dt. (with Annexure). Reliance is placed on the order of the ITAT 'F' Bench Mumbai in the case of M/s Geolife Organics v. ACIT & Ors. (ITA No. 3699/Mum/2016) for the AY 2009-10. The Ld. cou....
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....s also paid by way of TDS. Meanwhile, disputes arose between the Quality Control Department of the appellant and the subcontractor, the work was found of substandard or not to the satisfaction of the set standards and also not in accordance with the terms of the contract. The dispute ultimately resulted in abrupt termination of subcontract. This resulted into no talks between the parties, no settlement of accounts and no co-operation, whatsoever. The Ld. counsel submits that in such circumstances, the party did not respond to the notices issued by AO u/s 133(6) of the Act. Finally, the Ld. counsel submits that the appellant had furnished before the AO the complete address of SIPL, to whom payments were made during the relevant accounting p....
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.... unsubstantiated and unproved. Thus it is submitted by him that the order of the Ld. CIT(A) confirming the disallowance of Rs. 44,38,520/- made by the AO be confirmed. 7. We have heard the rival submissions and perused the relevant materials on record. The reasons for our decisions are given below. In the case of M/s Geolife Organics (supra), relied on by the Ld. counsel, the Tribunal held that the disallowance made by estimating further profit of 12.5% earned by the assessee is not sustainable in law and facts and restricted the disallowance to 2% of such purchases. In the instant case, the fact remains that the notice issued by the AO u/s 133(6) to SIPL on the address given by the assessee was returned back by the postal authorit....