TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 1073
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....en to Kundhaliya Construction Company & Silvertech Engineer. Appellant prays disallowance so made deserves to be deleted. 3. On the facts and in the circumstances of the case the ld. CIT (A) has grossly erred in confirming addition of Rs. 55,560/- made by ld. AO u/s 69A, being difference in amount advanced by assessee to Arihant Shivenk Infra Projects Ltd. and that confirmed by the party as unexplained. 4. That the appellant craves the leave to amend/alter all or any of the grounds of this appeal on or before the hearing of the matter." Ground No. 1 is regarding disallowance of development expenditure towards road construction etc. 2. The assessee is a private limited company engaged in the business of real estate. During the year under consideration the assessee has undertaken real estate project in the name and style of "Khushi Sansar", a township at Tonk Road, Gram Vatika, Jaipur. After purchase of land and conversion of the same for residential purpose, the assessee sold the land measuring 23,022.71 sq. yards during the year out of the total land developed by the assessee of 29,194.63 sq. yards. During the assessment proceedings, the AO noted that the assessee has debit....
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....actually done the development work, however, he has treated the purchases as bogus by wholly relying upon the statements of the suppliers recorded behind the back of the assessee. The ld. CIT (A) has confirmed the disallowance by ignoring all the documentary evidences produced by the assessee which includes Work Completion Certificate issued by the Chartered Engineer as well as other evidences including NOC of electric work done by JVVNL. Further, the assessee has made the payment against these purchases to all the parties in the subsequent year and the AO has not disputed the fact of payment made by the assessee through its Director Shri Umesh Gupta. Thus the ld. A/R has submitted that the assessee has produced all the bills/invoices in respect of the purchases made by the assessee from these parties. The genuineness of these bills/invoices has not been examined by the AO, even the AO has not confronted the signatures on these bills/invoices to the respective parties. Therefore, even if these parties have denied the supply of material to the assessee, it may be to protect their own vested interest. In support of his contention, he has relied upon the various decisions. 4. On the....
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....amount 71,20,843 The assesseee also explained the fact that the payment was made through its Director Shri Umesh Gupta but has rejected the claim on the ground that the payment made by the Director is not acceptable and allowable under the provisions of the Act. Further, the assessee produced the lay out plan of the project, photographs of the site showing the work of development, Work Completion Certificate issued by the Chartered Engineer regarding the work completed by the assessee as well as the development work towards road. The details of the work carried out by the assessee during the year under consideration has been given in the report of the Chartered Engineer which includes road work, sewerage line work, water supply work, electricity work etc. The assessee also filed the NOC of the electric work by JVVNL. Once these documentary evidences have been filed by the assessee regarding the actual work carried out at site and the AO has neither doubted the genuineness of these documents nor denied the actual work done at the site, then merely because some of the suppliers have denied the supply of materials to the assessee, the expenditures incurred ....
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....ce the assessee did not produce the requisite evidence and details during the assessment proceedings, therefore, the AO made disallowance of 50% of the said expenditure. On appeal, the ld. CIT (A) called for a remand report and after the remand report of the AO wherein the AO has reiterated its stand of disallowance, has confirmed the said disallowance of Rs. 10 lacs being 50% of the claim of Rs. 20 lacs. 7. Before us, the ld. A/R of the assessee has submitted that the said expenditure was incurred relating to the development work at residential project " Khushi Sansar". The material was purchased from the assessee from M/s. Silvertech Engineer to be utilized in transmission of electricity such as conductors, cables, PCC poles, transmission lines, insulators and other structures etc. The assessee produced the invoices/bills in respect of the said expenditure. Therefore, the expenditure was incurred in purchasing materials as well as erection and laying down of the transmission lines including some structures by these parties. The ld. A/R has referred to the quotations/estimations being submitted by these parties which show that the material as well as services for electrification ....