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2013 (6) TMI 549 - AT - Income TaxUnaccounted purchases - not supported by any evidence such as bills or evidence of payment etc. - disallowance of labour charges - Held that:- There is no dispute to the fact that the assessee, during the course assessment proceedings, has not furnished the full details of the labour charges for which the AO made disallowance of Rs.50 lakhs out of the labour charges paid in cash to the tune of Rs.50,42,100/-. CIT(A) after obtaining the remand report from AO sustained addition of Rs.19,42,515/- out of the addition of Rs.50 lakhs & noted that certain unaccounted payments are recorded in the ledger in the form of cash paid to various persons mostly labour contractors/labour supervisors whereas no such payments are recorded in the cash book. It is the submission of the assessee that the addition of Rs.19,42,515/- on account of labour charges brings the margin of profit to 25%, which is not possible in this line of business & under identical facts and circumstances the same AO in assessee's own case for A.Y. 2008-09 has estimated the profit from contract work at 8%. Thus finding force in the above contention of assessee & the fact that during the impugned assessment year there are certain defects, i.e. entries found in the ledger are not found in the cash book, estimation of profit @10% of the turnover will meet the ends of justice - ground raised by the assessee is partly allowed.
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