- (1.) This appeal u/s 260-A of the Income Tax Act, 1961 (for short, "IT Act") has been preferred by the appellant-revenue against the order of the Income Tax Appellate Tribunal (for short, "ITAT") dt.17/10/2008 passed in ITA No.1058/JP/2007 by which the ITAT has dismissed the appeal filed by the appellant-revenue against the order of the Commissioner of Income Tax (Appeals)-II, Jaipur (for short, the "CIT(A))". The relevant assessment year is the assessment year 2004-05.
(2.) The brief facts, as emerging on the face of record, are that the respondent-assessee is a limited company and mainly engaged in the business of contract and working for National Highway Authority of India on contract basis and the respondent-assessee gets work order after submission of tenders. It is claimed by the respondent-assessee that it is maintaining regular and proper books of accounts supported by material and relevant records and accounts are also audited by a Chartered Accountant.
(3.) The Assessing Officer (for short, "AO"), during the course of assessment proceedings, desired the respondent-assessee to explain the nature and source of payment debited on account of job work charges to the extent of Rs.2,51,80,655/- and particularly of three sub-contractors namely; Shri Bhura Ram Chaudhary, M/s. Payal Builders and Consultants & Gautam Builders and Consultants to whom substantial payments amounting to Rs.24,49,757/-, 27,92,267 and 16,47,516/- respectively have been made and finding that the amount being substantial desired further particulars and evidence with reference to the said payments to the said three sub-contractors.;