2019 (4) TMI 1023

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.... out of total disallowance amounting to Rs. 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 ....

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....(c) Commission to M/s. Stempcor at Rs. 26.33 Mi lions and (d) Closing stock at Rs. 265,47 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....

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....7.08.2006 10,36,361 8 Transportation CLO 17.08.2006 10,16,929 9 Transportation CLO 09.10.2006 7,66,406 10 Transportation CLO 28.10.2006 7,34,787 11 Transportation CLO 27.11.2006 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....

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....te details as to the expenses booked under the head 'Mining Expenses: (b) To furnish the account of all the parties to whom amount paid under the head 'Mining Expenses' during the financial year 2006-07 alongwith copy of bill in respect of each party': However, the same remained unexplained till date. 5. As it is very 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 th....