TaxTMI 
TaxTMI 
2025 (4) TMI 2113
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....e has filed cross objections which are basically in support of the ld. CIT(A)'s order. 2. Brief facts of the case are, assessee company filed its return of income for the Assessment Year 2016-17 declaring taxable income of Rs. 14,42,98,320/-. The assessee is engaged in development and construction of heavy infra projects, such as, irrigation projects, road projects, awarded by the Government Departments and private parties. The case was selected for complete scrutiny under CASS. Notices u/s 143(2) and 142(1) of the Income-tax Act, 1961 (for short 'the Act') were issued and served on the assessee along with questionnaire calling for details. The assessee filed requisite details through e-portal. During assessment proceedings, AO observed ....
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....A) and filed detailed submissions. Assessee also filed additional grounds on the demand raised u/s 234B and 234C of the Act. The assessee has also filed additional evidences before ld. CIT(A) and ld. CIT(A) remanded the matter to the AO and the relevant remand report was reproduced in the appellate order. After considering the details submissions and remand report filed by the AO, ld. CIT(A) deleted the additions proposed by the AO by observing as under :- "10.2 I have carefully examined the observations of the Assessing Officer in the Assessment Order and the remand report alongwith the rebuttals submitted by the appellant. On perusal of facts of the case, it is noted that the Assessing Officer made disallowance of 20% of the wage....
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....was withdrawn from one branch at Erode and transported to different project sites is factually not correct. The Assessing Officer has observed in the Assessment Order that the appellant is involved in construction projects and has several project sites at various places in the states of Tamil Nadu and Kerala and the total turnover of the appellant for the year under consideration was Rs. 252,19,69,528/- which includes site wages of Rs. 28,39,79,238/- thus site wages constitute approximately 11% of the total turnover. The Assessing Officer has not brought on record any evidence to show that the site wages claimed by the appellant were excessive and more than the industry norms. The Assessing Officer has observed that the net profit shown by ....
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.... and project wise estimation details and other expenditure estimation details as per contracts/tender documents sought during the assessment proceedings? 4. Whether in the facts and circumstances of the case, the Ld.CIT(A) has erred in overlooking that the total expenses under the head site wages expenditure incurred in cash without verifiable documentary evidences regarding withdrawal of cash, transport of cash to different sites as well as payment of such cash to site wages expenditure, as claimed by it? 5. Whether in the facts and circumstances of the case, the Ld.CIT(A) has erred in overlooking that the burden of proof of genuineness of the expenditure lies on the assessee? 6. Whether in the facts and circumst....
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....r hand, ld. AR of the assessee brought to our notice findings of the ld. CIT(A) at page 69 of the appellate order and he submitted that assessee has filed cross objections mainly in support of the findings of the ld. CIT(A) and he prayed that all the relevant informations were filed before the AO in the remand proceedings and ld. CIT(A) has considered all the documents and evidences submitted before the lower authorities. 7. Considered the rival submissions and material placed on record. We observed that AO has made ad hoc disallowance of 20% of site wages due to non-submission of details of cash payment in various site operated by the assessee. However, during appellate proceedings, assessee has submitted detailed documents in support o....