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2013 (12) TMI 1054 - AT - Income TaxDisallowance of labour charges – Held that:- When the assessee is undertaking labour intensive work of a huge extent, a duty is cast upon the assessee to maintain muster roll with particulars of labourers with full details and particulars of the labourers engaged by it - The only document which the assessee has produced before the Assessing Officer was muster roll - The Assessing Officer on the basis of estimation has disallowed 20 percent of the expenditure incurred towards labour charges - The assessee is engaged in civil construction activities which is labour intensive and the fact that the labour in such areas is unorganized - In the interest of justice it is appropriate to reduce the disallowance to 10 per cent – Partly allowed in favour of assessee. Disallowance u/s 40A(3) – Held that:- Payment was made to the supervisor, who was heading the group of labourers for the disbursement of payment to them - The payment to the supervisor has not been supported by vouchers - The assessee has not been able to show the veracity of the said payments made to labourers – Decided against assessee.
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