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2011 (7) TMI 533 - AT - Income TaxLabour charges disallowed - Held that:- Assessee's claim for labour charges payment is bogus inasmuch as the assessee was involved in a systematic inflation of expenses by using bogus bank accounts in the name of certain persons even as these accounts were actually used and operated by the assessee himself - the assessee has to furnish details of all the labour bills accounted for in a particular year, and produce the same for verification, and the labour charges allowable will have to be computed by adopting Rs. 3 per meter in respect of the quantities for which the bills are raised - In case the assessee is unable to do so or to produce any other sound basis on which computations of production quantities can be done, the CIT(A) will be at liberty to adopt the production figures on the basis of tax audit report - Subject to correction of mistakes as pointed out by the assessee, and compute the admissible labour charges at Rs. 3 per meter multiplied to the quantities so worked out - Direct the assessee to fully cooperate in expeditious disposal of the remanded proceedings and make it clear that in the absence of assessee's furnishing the required details and pointing out specific mistakes, if any, in the computations in Tax Audit Report quantitative details and computations in the assessment order, no relief will be admissible. Disallowance of expenses by invoking the provisions of Section 40(a)(ia) - Held that:- Since the certificates under section 197(1) on from 15 AA, as produced by the assessee, covered payments upto Rs. 30,00,000 and the total payments aggregated to Rs. 67,33,740 - Therefore, it is not the complete absence of certificates u/s 197(1) but monetary limitation on the quantum of payments on these certificates, which is the basis of disallowance. Brokerage payment - Provisions of Section 40(a)(ia) - Tax has not been deducted at source - Held that:- No specific arguments were advanced in support of this grievance - In any case, having perused the orders of the authorities below on the issue and in the absence of anything to demonstrate infirmity in the stand so taken, confirm the action of the CIT(A) on merits as well - No interference is called for - Thus the appeal is dismissed.
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