2019 (12) TMI 1537

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..../17 passed by Ld. CIT (A)-11, Bangalore for assessment year 2013-14 on following grounds of appeal: ITA No. 290/B/2018(revenue's appeal) 1. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting the addition of Rs. 1,57,95,052/- on account of wages expenditure which were not adequately backed up by primary documents. 2. Whether on the facts and the circumstances of the case, the Ld. CIT(A) is correct in deleting addition of Rs. 1,32,21,414/- on account of 14A r.w.r 8D(iii). ITA No. 318/B/2018 (assessee's appeal) 1. The order of the learned Commissioner of Income Tax (Appeals) in so far as it is against the Appellant, is opposed to law, weight of evidence, natural justic....

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....tory notices were issued in response to which representative of assessee appeared before Ld.AO and filed requisite details as called for. Ld.AO after verifying various details filed by assessee passed assessment order by making following additions: • interest paid to NBFC Rs. 69,14,866/- • partial disallowance of wages Rs. 1,57,95,052/- • disallowance under section 14 A of Rs. 1,32,21,414/- 3 Aggrieved by additions made by Ld.AO, assessee preferred appeal before Ld. CIT (A) who partly allowed appeal filed by assessee. Aggrieved by order passed by Ld. CIT (A) assessee as well as revenue both preferred appeal before this Tribunal. ITA No.318/B/2018 4 Assessee in its appeal has raised only one is....

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....which TDs under section 194 A of the Act has not been deducted. He submitted that disallowance confirmed by authorities below under section 40 (a) (ia) of the Act is totally justified. Ld. Sr. DR, however submitted that based upon certificate issued by chartered accountant now filed by assessee as additional evidence been set aside to Ld. AO for verification. We have perused submissions advanced by both sides in light of records placed before us. 6 Admittedly, assessee has not deducted TDS under section 194 A of the act against interest paid to nonbanking financial companies. It is also an admitted fact that the companies to whom assessee has made payments are repeated companies like M/s. L & T Finance Ltd., M/s. Bajaj Finance Ltd., M/s.....

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.... Ld. AR submitted that assessee is in the contract business and undertakes contract work at various parts of the state particularly in remote areas. He submitted that it was not possible for assessee to keep supporting evidences for daily which payments and other site related expenses where the labour turnover is very high. Further Ld. AR submitted that in this line of business the labour payments, bills/vouchers are generally of self-made nature and is inevitable. In support of his argument he placed reliance upon decision of Hon'ble Delhi High Court in case of Pr. CIT vs. M/s. R.G Buildwell Engineers Ltd., reported in (2018) 99 Taxmann.com 283 which has been approved by Hon'ble Supreme Court in case of Pr. CIT vs. M/s. R.G Buildwell Engin....