2021 (1) TMI 279

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his appeal on the following two grounds, without 1 being general in nature. 1. On the facts and in the circumstances of the case, Ld. CIT(A) has erred in law in treating the contractual receipts of goods under section 194 C by treating them as regular sale by suppliers. 2. On the facts and circumstances of the case, Ld. CIT(A) has added in law in deleting unverifiable miscellaneous expenses. 2. Brief facts of the case, as could be culled out from the record, are that the assessee is engaged in the business of running a restaurants by the name of Zen and Tao in Connaught place which sell primarily Chinese food, beverages and liquor and that the company outsourced the Chinese kitchen to another entity called Dewa enterpri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d was supplied by charging VAT on the sale of food supplied, which in turn was sold to the customers of the assessee by charging VAT thereon by claiming the VAT input. On this ground, the assessee contended that the transaction between the two concerns is in the nature of purchase and sale inasmuch as the contract for supply of material/food is not a labour work contract as a envisaged under section 194C of the Act. 5. Ld. CIT(A) considered the contentions of the assessee in the light of the submissions made on behalf of the assessee. Further, Ld. CIT(A) found that a similar question had arisen in the case of the assessee in the previous assessment years and after examining the contract with the Dewa enterprises, the bills issue and the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d of appeal. 7. Second ground relates to the addition of Rs. 1, 04, 788/-towards and had disallowance of 10% of the miscellaneous expenses. According to the learned Assessing Officer the assessee had debited miscellaneous expenses of Rs. 10, 47, 885/-in P&L account, but the larger part of it is not subject to verification due to lack of proper vouchers and, therefore, the disallowance of 1/10 of the expenses had to be made. Assessee argued before the Ld. CIT(A) that such disallowance was made without any basis of reason and that too without affording an opportunity to the assessee to explain their case on this aspect. 8. Ld. CIT(A) considered the contentions of the assessee and found that the learned Assessing Officer was not clear in....