Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 689 - ITAT INDOREDisallowance of construction expense – Assessee is in business of civil construction – AO disallow expense on ground that - Assessee has shown work in progress on estimate basis, no proper bills, vouchers – Addition was made on the basis of specific inquiries establishing non-existent sub-contractors especially when the assessee could not produce such sub-contractors to prove their identity and genuineness – Labour contractors shown as creditor were not found at given address - CIT(A) restrict disallowance of 25% of disallowed amount in its order - Held that:- As books of accounts, cash books, ledger, vouchers for such expenses were produced and the same were test checked by AO. If the AO was not satisfied with such record, nothing prevented her either to ask the assessee to furnish more information or to bring on record any evidence controverting the claim of the assessee. Even otherwise, the inquiries were conducted by the A.O. nearly about after 2 ½ years from the end of the relevant FY, therefore, the labour contractors cannot be expected to be available at the given address after lapse of such period because they keep on shifting as per the availability of the work. Upheld the order of CIT(A). Appeal decides in favour of assessee.
|