Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 592 - AT - Income TaxDisallowance of labour expenses and cartage expenses - Books of accounts rejected – Held that:- What a person does in a particular month need not follow in all other months as well - Enquiries on Cartage expenses seems vague local enquiries, even if these inquiries actually took place, were neither place on record or confronted to the assessee - there is a direct confirmation from Amul which is on record and this confirmation is contrary to the local enquiries - There may not have been any cartage expenses in the last year because there may not have been any such work in the last year, but that fact alone cannot lead to the conclusion that all cartage bill are fake or highly inflated - It is unreasonable to accept the assessee to produce for verification the persons who did all this work for him - Once the books are rejected, the Assessing Officer may as well have examined the reasonableness of profits of the assessee and pointed out how the profits of the assessee are lesser than the normal profits in that line of business but that exercise has also not been carried out. On one hand, the Assessing Officer has rejected the books of account, and on the other hand, the Assessing Officer has adopted the same book results and disallowed the expenses on estimate basis from the book results – the order for disallowance set aside, which are made by improperly rejecting the books of account and adopting some hypothetical computations about labour work and proceedings on the basis of surmises and conjectures – decided in favour of Assessee.
|