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2013 (6) TMI 620 - ITAT DELHILabour expenses/wages disallowed in the absence of proper evidence - CIT(A) deleted the addition in part - Held that:- AO had not recorded any specific finding to reach the figure of disallowance of Rs. 3 lac, which was an ad hoc addition made, ignoring the fact that the percentage of labour wages to gross turnover had come down to 13.73% for that year (Assessment Year 2008-09) as against that of 16.99% in the earlier year. CIT (A) has restricted the addition to Rs. 1 lac which, in our considered opinion is well justified. Against revenue. Unverifiable purchases - CIT(A) deleted the addition - Held that:- As the assessee has shown better results during the year, over those for the earlier assessment year. The gross profit has gone up to 13.10% against 12.90% in the earlier year. In view thereof, the CIT (A) cannot be said to have erred in holding the addition made on estimate basis to be unjustified. In favour of assessee.
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