TaxTMI 
TaxTMI 
2018 (10) TMI 861
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....perused. 2. It is noticed at the outset that the Revenue's sole substantive ground raised in the instant appeal challenges correctness of CIT(A)'s order deleting / partly restricting tools & tackles expenses addition of Rs.4,39,661/- thereby granting relief of Rs.80,21,484/- vide following detailed discussion:- "3.1 The second to fifth grounds of appeal are against an addition of Rs. 84,61,145/- on account of expenses on tolls an tackles claimed by the appellant. In the assessment order, the Assessing Officer (AO) has discussed the issue as under:- 'The assessee had debited to P & L A/c. a sum of Rs. 84,61,1145/- under the head tools and tackles. No proofs related to (i) purchase of those tools and tackles, (ii) site-wise sending of t....
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....asting bailor, spare plywood and MS sheet. Details of the various groups were enclosed with ledger account of tools and tackles. The usage and consumption of the tools and tackles was explained as under: '1. Steel shuttering materials as per list A: Amount of purchase Rs. 2532319/- Bill raised to client for staging work of 23768.20 cum and form work/shuttering work of 21948.70 sq. mt. amounting Rs. 13899750/- after repeated use ½ of total materials purchased i.e. Rs. 1266160/- were found reusable. 2. Hammer Drill, dewatering sludge pump, lifting tools etc. as per list B. a) Dewatering sludge pump-6 no. of Rs. 216295/- : Used for dewatering bentonite mixed sludge from 20 mtr. Deep bored pile before concreting 3 no. pumps were....
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....d used for boring/drilling hole upto 3 mtr. Below ground level. Only 2 pcs. were found reusable after repairing/modifications. Hence proportionate value has been taken as closing stock. e) M.S. bailor: Total quantity purchased 6 no. and used initial boring at top portion after which chisel boring starts. Only 1 no. was found reusable after repair and modifications. f) Other spares, tools, accessories: All the materials purchased and usable underground job and fully chargeble a revenue expenditure. Approx. assessment made and found 1/5th of the total quantity is reusable and hence proportionate value has been as closing stock.' 3. M/s Chisel, casing, bailor spares, hardwood plywood etc.: As per list C It was stated that utility and ....
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....ls. The assessee could not produce/submit purchase vouchers of R.2,99,461/- (marked in store ledger) and per the certificate of the Civil Engineer, there are some tools of Rs. 1,40,200/- are repairable, abut clamed as damaged/scrap.' 3.4 The AR of the appellant, furnished a written reply to the remand report on 19.07.2016, wherein it was stated, inter-alia, as under:- * 'We appeared at the office of Asst. Commissioner of Income Tax, Circle-24, Chinsurah, Hooghly in connection with 'Remand Report' for the above mentioned Appeal case from time to time and submitted the documents including the copies of purchase documents, store ledger, stock certificate and stock valuation report issued by a qualified Engineer as required by the Office ....
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....iture. Moreover, on the basis of possible reuse of tackles, closing stock of tools and tackles has been fairly estimated, which has to be increased by Rs. 1,40,200/- as per the certificate given by the Engineer referred to in the remand report. Thus, it has to be held that the expenditure claimed by the appellant was revenue expenditure. As agreed to by the appellant, in the remand report it has been pointed out that purchase bills/.vouchers worth Rs. 2,99,461/- could not be produced. The other purchases have been found properly vouched by the AO at the remand report stge. Therefore, addition of Rs. 4,39,661/- (i.e. Rs. 2,99,461/- + Rs. 1,40,200/-) is confirmed and the balanced addition made by the AO is deleted." 3. Learned Departmental ....