TaxTMI 
TaxTMI 
2019 (4) TMI 1023
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.... 10,64,56,411/- made by the Assessing Officer on account of disallowance of Mining Expenses. 3. The assessee is engaged in the business of manufacturing of pig iron. During the course of scrutiny assessment proceedings, the assessee was asked to produce the books of account for verification. On verifying the books of account on test check basis, the Assessing Officer noticed that in the profit and loss account, the assessee has debited an amount of Rs. 53.22 crores under the head 'Mining Expenses'. The assessee was asked to produce the bills and vouchers in support of this expenditure. However, on receiving no plausible reply, the Assessing Officer disallowed 20% of the entire expenses on adhoc basis and made addition of Rs. 10,64,56,441/-....
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....Millions 1. To furnish the account of all the parties to whom amount paid under the head mining expenses during the F Y. 2006-07, in the following format Name of the Balance as Balance as on Transaction Payment Party along the complete address On 1st April 31st March during the year You are requested to submit the above details/evidence on or before 22.10.2012. 2.1.1. In response to this, assessee has filed reply dated 22.10.2012 in which stated as under: Para 2. In reply thereto and the instruction of the assessee, it is submitted that submissions dated 28.02.2012, 12.03.2012 and 05.04.2012 had already been filled alongwith copy of invoices on sample basis of all expenses claimed in the return of income by ....
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....1.2006 3,86,116 12 Transportation CLO 21.12.2006 6,11,570 13 Transportation CLO 02.01.2007 8,14,088 14 Transportation CLO 19.03.2007 3,08,840 15 Transportation CLO 27.03.2007 2,68,304 16 Printing & Stationary 5,553 17 Printing & Stationary 30.06.2006 20,121 18 Printing & Stationary 2,488 19 Repair & Maintenance 28.10.2006 48,315 However, the assessee had expressed inability to produce voucher 3 to Rs. 83,17,261/- as mentioned below. The assessee has also stated vide leller dated 11..09,2014 that since the record has become very old therefore, the vouchers have either deteriorated or destroyed and the could only produce some of the voucher called for(on sam....
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....much evident that the assessee is not able to provide all the bills asked for test check basis, this clearly proves that the assessee is not able to substantiate his claim for mining expenses. 6. Accordingly, requested that the issue may be decided by your goodself based on the facts and circumstances of the case and the aforementioned discussion. " 6. After considering the facts of the case in the light of the remand report furnished by the Assessing Officer, the ld. CIT(A) confirmed the addition to the extent of Rs. 8,31,726/- and deleted the balance of Rs. 9,81,39,180/-. 7. Before us, the ld. DR strongly submitted that though the unvouched expenses were Rs. 83,17,261/- but the Assessing Officer was not in a position to examine the ....