AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 117
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....r section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') dated 12.02.2016. The assessee has raised the following grounds of appeal:- "1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of Assessing Officer in making a disallowance of Rs.3,45,378/- u/s 40(a)(ia) of the IT Act 1961. 2. On the facts and circumstances of the case as well as law on the subject the learned CIT(A) has erred in partly confirming the action of Assessing Officer by sustaining the disallowance of Rs.2,46,915/- out of total disallowance of Rs.4,93,830/- on account of machinery salary expenses. 3. On the facts and circumstances of the cas....
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.... The Assessing Officer further noted that assessee has also paid Rs.24,69,150/- in cash on account of "machinery salary". The assessee was asked to furnish details of such expense. Assessing officer recorded that no details were furnished by assessee nor name and address of person to whom said expenses were paid, were given. Accordingly, in absence of such details the assessing officer disallowed 20% of such expense, thereby worked out the disallowance of Rs.4,93,830/-. The Assessing Officer also noted that under the head "income from other sources" of Rs.36,693/-. The assessee claimed interest expenses of Rs.3,95,466/-. The assessee was asked to furnish relevant details. The Assessing Officer recorded that despite service of show cause not....
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.... and confirmation of all the parties along with Income Tax Return shown that they have taken interest as "income in computation of their income". The submission of assessee was remanded back to Assessing Officer for his remand report. The Assessing Officer furnished his remand report on 12.08.2016. In the remand report, the assessing officer objected for admissions of additional evidence. On the addition of interest expenses disallowances the assessing officer reported that assessee furnished computation of income, confirmation of account of all three persons namely Nareshbhai, Shah Jigraj Sampatraj & Co and Jograj S Rana. However, the details of form15G/15H were not furnished. Against deduction of interest expense under section 57, the ass....
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..... On the disallowance of Rs.4,93,830/- on account of machinery expenses, the Ld. CIT(A) restricted to 10%, against 20% disallowed by assessing officer. On other disallowance of interest expense, the Ld. CIT(A) held that no certificate as required under Rule 31ACB in Form 26A was furnished. Thus, the addition was upheld. Further aggrieved assessee has filed present appeal before the Tribunal. 5. I have heard the submission of Ld. Authorized Representative (Ld.AR) for the assessee and Ld. Senior Departmental Representative and perused the materials available on record. Ground No.1 relates to addition / disallowance under section 40(a)(ia) of Rs.3,45,378/-. Ld. AR for the assessee submits that before Assessing Officer, the assessee furnishe....
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....ed any other evidence except PAN of transporter though remaining all other submission as made by assessee has already been considered by Ld. CIT(A) while deciding the issue in question. 7. I have considered the rival submission of both the parties and perused the record carefully. This disallowance consists of two components; (i) relates to disallowance of transport expense to Kishan Tempowala. I find that assessee has provided PAN of the transporter and the details of transport expenses. The genuineness of said expense is not doubted either by Assessing Officer or Ld. CIT(A). I further find that as per Section 194C(6) that the assessee has provided PAN of the transporter and the transaction is not disputed and no disallowances of such t....
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.... CIT(A) further reduced it to 10%, thereby granted further relief of 50%. Entire expense assessee has shown in cash. Therefore, I do not find any reason to interfere with the finding of Ld. CIT(A). This ground of assessee's appeal is dismissed. 11. Ground No.3 relates to disallowance of interest expense of Rs.3,95,466/- under section 57 of the Act. The Ld. AR for the assessee submits that Assessing Officer made addition by taking view that assessee has not furnished any details and Ld. CIT(A) confirmed the action of Assessing Officer by holding that no certificate as per Rule 31ACB in Form 26A is furnished. The Ld. AR for the assessee submits that assessee has filed account confirmation and Form 26A. the ld AR for the assessee submits th....