TaxTMI 
TaxTMI 
2024 (4) TMI 1279
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....raised by the assessee relate to the addition of Rs. 21,12,576/- confirmed by the ld. CIT(Appeals) pertaining to expenses incurred by the assessee in respect of purchase of material, labour expenses, repair and maintenance, establishment, selling and administrative expenses. The grounds read as under : "1 BECAUSE, upon due consideration of facts and in overall circumstances of the case the Ld.CIT(A) was not justified in directing disallowance of expenses @ 7.5% amounting to Rs. 21,12,576/- as against 10% made by the 'AO' inrespect of 'Purchase of Material', Labour Expenses, Repair & Maintenance and Establishment, Selling and Administrative Expenses. 2.) BECAUSE, while doing so the Ld. CIT(A) omitted to consider that afte....
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....t history of the case. As per past history, as reproduced in the written submission filed by the assessee, the net profit assessed in various assessment years right from the assessment year 2004-05 to assessment year 2013-14, varies from 6% to 11% with rate of 8% being applied in majority of the years. Further, his contention was that the case law relied upon by learned CIT(Appeals) to justify the rate of 11.8% of the Hon'ble Punjab & Haryana High Court in the case of CIT vs. Prabhat Kumar (2010) 323 ITR 675 (P&H) could not be relied in preference to the past history of the appellant itself. Learned counsel, therefore, pleaded adequate relief on this issue. 5. Learned DR, however, supported the order of ld. CIT(Appeals) pointing out that t....
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....e of 7.5% of the expenses, he accordingly applied rate of 7.5% to the adhoc disallowance. But be that so, there cannot be a standard net profit rate applicable to all persons working in a similar activity. The assessee has pointed out to us that as per its past history, net profit rate assessed on average rate of 8% We, therefore, consider it fit to reduce the disallowance to 5% of the expenses. Ground No. 1, 2 & 3, raised by the assessee are partly allowed in above terms. 7. Ground No. 4 relates to disallowance u/s. 40(a)(ia) of the Act amounting to Rs.9,53,000/- on account of non-deduction of tax at source on various expenses, which are mentioned in the ground reading as under : 4. BECAUSE, disallowance of Rs. 9,53,000/- made under se....
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....rly admitted that no details were submitted. Written submission of the assessee in this regard is reproduced hereunder : "Assessee respectfully submits that such a view of the authorities below is unsustainable. Vide Reply dated 09.09.2022 & 09.09.2023 furnished on e-portal...vide e-acknowledgement No. 479853791090922 & eacknowledgement No. 240859541090923 the following Chart vide Page-84 providing details of payment made against JCB, Pocklane, Roller and Tractor Rent was furnished which shows that payment of Rs. 7,42,600/- were made to 14 individuals and payments were less than Rs. 1,20,000/- which is the limit provided for TDS. Though no details against payment of water tank rent amounting to Rs. 2,10,400/- was furnished. M/S TOMAR & B....
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.... was not liable for tax deduction at source under any provision of the 'Act'. The 'appellant 'had also furnished details of payees of machinery, rent vide reply dated 28- 12-2016 before the AO and Ld. CIT(A). As could be seen from the details filed, none of them had been paid rent beyond threshold limit of Rs. 1,80,000/- stipulated for the year in question. The 'AO' had no tangible material to make the disallowance under section 40A(ia) of the 'Act' and your honour, therefore, may kindly delete the same." 10. Learned DR, however, reiterated that in absence of any details submitted by the assessee as noted by the revenue authorities, the disallowance needs to be confirmed. 11. Having heard the contention of ....