TaxTMI 
TaxTMI 
2023 (10) TMI 1428
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....venue preferred this appeal. 2. Brief facts of the case are that, the assessee company is engaged in the business of mining contracts. In pit mining operations, it is necessary to remove overburden and other barren waste materials to access ore and other minerals. Cost incurred to extract the same are called as overburden charges or stripping costs. Subcontract was awarded by assessee company to GVP E&C, which is the proprietorship of Mr. GV Pratap Reddy, the Managing Director of the assessee company. The subcontracts were then given to the employees of the assessee company. Mr. GV Pratap Reddy is a civil contractor and has been executing a variety of contracts for more than 20 years even before the assessee company has been incorporated....
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....25 crores on a turnover of Rs. 46.82 crores, Rs. 60.52 crores & 41.03 crores for the assessment years 2011-12, 2012-13 & 2013-14 respectively. Lastly, he observed that the turnover on account of overburden removal has been assessed in the hands of Mr. GV Pratap Reddy and further in the hands of his employees, whose returns have been filed, there is no concrete material brought on record by the learned assessing officer to justify the disallowance of the expenses claimed on overburden removal. Accordingly, he deleted the addition while allowing the appeal. 5. Revenue is aggrieved by such deletion, and filed this appeal contending that the assessee company claimed the business expenditure by way of transfer of its money in the guise of sub....
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....r. Subba Reddy paid the amount to un-known subcontractors. She, therefore, submitted that all these circumstances, no doubt furnish a basis for the learned Assessing Officer to entertain a doubt in respect of such an expenditure and there is every justification for the learned Assessing Officer to reach a conclusion that this particulars expenditure is a bogus expenditure. She submitted that by making certain general statements and without giving any cogent reasons basing on verifiable facts, learned CIT(A) deleted the addition and such findings cannot be sustained. 7. Per contra, it is the contention of the learned AR that there is no material available with the assessing officer to show that the expenditure incurred was bogus or there ....
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....l the documentary evidences such as statement giving the names and addresses of all the subcontractors along with PAN numbers and details of deduction of TDS are furnished before the learned assessing officer which are not contradicted, and all the subcontractors have filed the returns of income and paid taxes and the copies of the returns and bank accounts of the employee subcontractors have been filed before the learned Assessing Officer. 9. We have gone through the record in the light of the submissions made on either side. Only issue that arises for consideration in this matter is whether or not the assessee incurred the overhead removal charges. Assessment order reveals the disbelief of learned Assessing Officer as to the genuinenes....
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.... crores on a turnover of Rs. 46.82 crores, Rs. 60.52 crores & 41.03 crores for the assessment years 2011-12, 2012-13 & 2013- 14 respectively, demonstrating that such an expenditure incurred for overburden removal, was high in the earlier years and lowest in the year under consideration. 11. Assessee's declaration of income of Rs. 2.76 crores and Revenue accepting the same during the year clearly shows that there were business operations in mining by the assessee during the year. When the income is accepted, the expenditure cannot be denied in toto. Even if we go by the reasoning of the learned Assessing Officer that the subcontractors are un- known, the fact remains that in respect of such an expenditure, TDS was affected. By no stretch ....