TaxTMI 
TaxTMI 
2021 (1) TMI 161
X X X X Extracts X X X X
X X X X Extracts X X X X
....red to as "the Act") dated 11/03/2014 in quantum appeal and penalty order under s.271(1)(c) of the Act dated 27/02/2017 relevant to Assessment Year (AY) 2011-12. 2. At the time of hearing, it was informed to the Bench that the appeal of the assessee in ITA No.1012/Ahd/2015 for AY 2011-12 concerns additions/disallowances in quantum proceedings, whereas the other appeal of the assessee in ITA No.298/Ahd/2019 for AY 2011-12 concerns imposition of penalty under s.271(1)(c) of the Act on the additions/disallowances made in the quantum proceedings. It was thus informed that both the appeals being inter-connected and integral to each other on facts, it will be expedient to hear both the appeals together for their simultaneous disposals. Consequen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-13 was also filed by the contractor after the issuance of notice to the contractor. The Assessing Officer observed that while the assessee has submitted copy of bills, copy of ledger account of the contractor, it has failed to prove the genuineness of the expenses and thus failed to substantiate the claim made. 5. The Assessing Officer thus rejected the claim of the job-work expenses primarily on the ground that complete reply was not filed by the contractor and the assessee could not produce the party for verification for genuineness of expenses. The bills produced were found to be dated for the last day of the year. Adverse inference was also drawn on the premise that the contractor was not a tax assessee. The Assessing Officer was con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....here are total 14 RA bills raised during the year. Appellant has shown payment to this party in two years and in both the years the amounts have been credited on the last day of the financial year. Even on Form 16A submitted by the appellant, address of Shri Kailash Sukhlal Mandal is not mentioned. As stated in the assessment order, the notices issued to this party were returned unserved and appellant could not produce the party before the AO for verification. Importantly, the party has not filed return of income and only after receipt of notice from the AO return of income was filed. Appellant has submitted copy of Ledger account of the party in its books. As per Ledger account, the payments were made under different heads like wood, secur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....its (iii) payment made through banking channel in consonance with the provisions of section 40A(3) of the Act (vi) name and address of the contractor provided. Along with the aforesaid evidences, the ledger account of the contractor in the books of the assessee as well as bank statement showing payment made to the contractor was also placed. It is contended that the accounts of the assessee has been duly audited without any adverse comments. In the course of hearing before the Tribunal, a reference was made to the ledger account which depicts adhoc payments made to various parties including Shri Kailash Sukhlal Mandal and TDS was also duly deducted thereupon as mandated in law. With reference to details of job-work/labour charges performed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....A to E of the project, the building construction work cannot be completed and building cannot be sold, appears to be quite compelling to support the factum of rendering of jobwork/ labour work. 11. Noticeably, it is not the case of altogether non-compliance of the notice under s.133(6) of the Act. The Assessing Officer himself has made an averment to the effect that partial/incomplete reply was received from the contractor. However, it is not known as to on what aspects, reply was not adequately received. Thus, in totality of the circumstances, the assessee, in our view, has proved overall bonafides of the expenses actually incurred in relation to construction of project. Given the evidences placed, the Assessing Officer could not have dra....