TaxTMI 
TaxTMI 
TaxTMI 
2015 (11) TMI 1843
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....ts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the disallowance of Rs. 46,75,800/- made by the AO u/s.40-A(3) of the I.T. Act, 1961 being 20% of the expenditure incurred in cash. (ii) While doing so, the Ld. CIT(A) has failed to appreciate that the assessee had not furnished any evidence in support of the huge cash expenditure claimed to have been incurred on behalf of the clients, even when it claimed that the evidence was handed over to its clients. (iii) The Ld. CIT(A) has further erred in not considering the fact that notices u/s.133(6) issued to the clients of the assessee to verify the genuineness of the claim were returned unserved. (2) (i) On the facts and in the circumstances of the ca....
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....ion, loading and unloading for clients. In the assessment year of 2007-08, the assessee credited the agency charges of Rs. 53,09,831/- to P&L account and declared his net profit of Rs. 9,38,353/-. While finalizing the assessment of the assessee of the year of 2007-08, the Assessing Officer (hereinafter referred to as the AO) rejected the claim of expenditure being violation of provision under section 40A(3) and also rejected the claim of speed money being in violation of the provision of under section 40A(3) and claim of outstanding liability to the tune of Rs. 2,17,160/-. The AO also rejected the claim of the amount outstanding against the parties for more than three years and added an amount of Rs. 42,40,265/- towards the income of the as....
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.... (CHA), clearing, forwarding, speed money, transportation, loading and unloading for the clients and did not claim any expenditure on behalf of him as he was doing the business on behalf of other, therefore, in the said circumstances, the Ld. CIT(A) has rightly allowed the expenditure and speed money and allowed the term loan etc. and assailed the contention of the Ld. D.R. and also reliance placed on the law settled in (2010) 2 ITR 29 (Tri.- Cochin). 6. By giving the careful thoughts to the contentions raised by the representatives for the parties and perused the record carefully, the grounds which have been taken by the assessee are being decided accordingly. Issue-I It is required to be decided whether the Ld. CIT(A) has erred in dele....
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....Ld. CIT(A) has rightly deleted the addition of Rs. 46,75,800/- being 20% of the expenses. Similar situation is with the speed money regarding the issue No.2. The speed money is to be payable by the company to the labourers and others to achieve the result or to do the work at spot. This expenditure has also been incurred by the assessee company on behalf of its client. This amount has not been belonging to the assessee company and in this regard the company also reflected the said amount in its Profit and Loss account. As discussed above, section 40A(3) deals with the computing of income under the head of profit and gains of business and provision under section 40A(3) is one of the sub sections of section 40A and while computing the taxable....
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.... is liable to be set aside in the interest of justice. 9. While on the other hand, the Ld. A.R. has refuted the said contentions. The assessee has constructed the warehouse project and installed plant and machinery. The warehouse project was completed in the year of 1990 & 1991 and amount debited in the balance sheet for the year of 1990-91 as under: (1) Warehouse project of Rs. 1,25,42,068/- (2) Plant & machinery of Rs. 14,53,424/-. 10. Against the said project, the assessee took the loan from Dena Bank and failed to repay the same, hence, the bank has filed the recovery suit against the assessee. There was a settlement for the amount payable to the bank against the assessee's term loan liability. The assessee paid a sum of Rs. 23,74,0....