TaxTMI 
TaxTMI 
2023 (7) TMI 896
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....nd disposed of by this common order for the sake of convenience. The assessee has raised following grounds of appeal in ITA No.170/Bang/2023: 1. "The orders of the authorities below in so far as they are against the appellant, are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. 2. The learned CIT[A] is not justified in sustaining the disallowance of Rs. 15,49,290/- made in respect of speed money paid in cash towards labour wages under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] ought to have appreciated that this issue has been disposed off in favour of the appellant by the Hon'ble ITAT, Bangalore in ITA No. 1358 to 1363/....
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..... No. Particulars of addition Amount (in Rs.) 1 Disallowance of 6% of expenses incurred on wages paid in cash 15,49.290/- 2 Disallowance of depreciation 20,52,753/- 3 Addition towards cessation of liability u/s. 41(1) of the Act 16,16,942/- 2.1 Against this, assessee went in appeal before NFAC. The NFAC confirmed the order of the AO. Against this assessee is in appeal before us. Similarly, for the assessment year 2016-17 AO made advance disallowance of 6% of speed money/wages paid for which assessee furnished vouchers. According to the AO, vouchers are signed by single person. Hence, he disallowed 6% of total expenses. Against this assessee is in appeal before us. 3. After hearing both the parties, we ....
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....er casual labourers engaged for cleaning purposes. It was explained before us that the assessee has been carrying voluminous quantity of iron ore and large number of workers who were illiterate and have no commercial knowledge and it is not possible to take down the signatures of those persons and in such circumstances, the vouchers were blank and for the accounting purposes assessee prepared vouchers and they were duly accounted in the books of accounts of the assessee and books of accounts were audited by the statutory auditors and no adverse comments has been made by them. The A.O. alleged in the first page of the assessment order that incriminating evidence has been seized which reveals that the assessee has been engaged in inflation of....
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.... one or two days during the financial year. There is no basis for this kind of allegation made by the AO and he has not brought anything on record to establish this contention of him. Being so, we have to reject this plea of the revenue authorities. In our opinion, considering the nature of the business of the assessee, we can take the judicial notice of the fact that if the AO had any doubt with regard to genuineness of any one of the voucher produced by the assessee, he could have drawn sample vouchers and called upon the assessee to produce the concerned recipient to establish the genuineness. Without doing so, making any adhoc disallowance is not legally sustainable. If the Ld. CIT(A) also without carrying on any enquiry, certain percen....
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....aving no legal sanction. For this purpose, we rely on the judgement of Hon'ble Karnataka High Court in the case of Shri Ganesh Shipping Agency in ITA No.366 of 2015 dated 6.2.2021, wherein held as follows:- "5. We have considered the submissions made on both sides and have perused the record. From perusal of the order passed by the authorities, it is evident that the authorities have accepted the books of accounts produced by the assessee. The Assessing Officer, in its order, has admitted that the payment of speed money is a trade practice which is followed by the assessee and similar business concerns functioning for speedy completion of their work. However, the disallowance of 20% of the expenses is made solely on the ground that....