TaxTMI 
TaxTMI 
2019 (10) TMI 1116
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....o as "the Act") dated 22/03/2013 relevant to Assessment Year (AY) 2010-11. The assessee has raised the following grounds of appeal: 1 The Ld.CIT(A) erred on facts and in law in confirming disallowance of Rs. 5,47,863/- in respect of purchase of diesel and oil from Ashapura Petroleum- Lakhtar without appreciating the explanations and submission of the appellant in right perspective. 2 The Id CIT(Appeals) erred on facts and in law in confirming disallowance of Rs. 2,01,054/- in respect of purchases made from JP Stone Crusher P Ltd. without appreciating the explanations and submissions of the appellant in right perspective. The 1st issue raised by the assessee is that learned CIT (A) erred in confirming the order of the AO by sustaining ....
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.... the assessee were tempered. There was overwriting and correction on the bills. iii. The assessee did not file the original bills. 3.2 The assessee in his rejoinder before the learned CIT (A) submitted that the diesel and the oil expenses were directly incurred in connection with the "LAKHTAR project". It has declared a contract receipt of Rs. 54,35,091.00 and the closing work in progress of Rs. 69,41,752.00 in respect of such project which was duly accepted by the Revenue. Under the "LAKHTAR project", it was constructing the canal wherein the digging and the removing of sand was done by using the tractors. 3.3 It was purchasing the diesel and the oil from Ashapura petroleum from the month of January 2010 against the advance payment m....
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.... the authorities below. 6. We have heard the rival contentions and perused the materials available on record. The facts of the case are not in dispute. Therefore we are not inclined to repeat the same for the sake of brevity and convenience. 6.1 From the preceding discussion, we note that the activity of the assessee under the"LAKHTAR project" was to construct the canal which certainly requires digging and removal of the sand from the earth. Essentially for this activity, the assessee has to use machinery and vehicles for the transportation of the sand. This fact was not disputed by the authorities below. 6.2 Similarly, the fact that the payment was made through account payee cheque was not in dispute. 6.3 There was no allegation in the....
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.... 3,21,120.00 Balance claimed in the profit and loss account 2,26,743.00 6.6 However, the AO has made the disallowance of Rs. 5,47,863.00, which appears incorrect amount of disallowance in the given facts and circumstances. Thus, in case the amount of diesel and oil expenses needs to be disallowed, then at the most it can be disallowed to the extent of 2,26,743.00 only. 6.7 The next question arises if the assessee is claiming the reimbursement of the diesel and oil expenses from the parties, then there is no question of charging the same in the profit and loss account. On a question to the learned AR for the assessee, he replied that the assessee is also incurring the diesel and oil expenses for its in-house consumption. The lear....
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....s of the purchases from JPSCPL issued a notice under section 133(6) of the Act, but there was no response. Accordingly, the AO treated the same as bogus expenses and added to the total income of the assessee. 8. The aggrieved assessee preferred an appeal to learned CIT-A. The assessee before the learned CIT (A) filed the additional evidence under rule 46A of Income Tax Rule. Accordingly, the learned CIT (A) called for the Remand report from the AO who in turn submitted that the party, i.e. JPSCPL has shown corresponding sales in its books of accounts for Rs.20,59,356.00 leaving a difference of rupees 2,01,054.00 which was shown excessive purchased by the assessee. 9. The learned CIT (A) after considering the submission of the assessee and....