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2015 (9) TMI 699 - AT - Income TaxReopening of assessment - disallowance of expenditure - Held that:- As can be seen from the facts and materials on record, the entire expenditure of ₹ 2,79,48,884 was supported by bills and vouchers, except an amount of ₹ 97,224. In fact, in para 8.3 of the order, ld. CIT(A) has observed that except only one voucher of ₹ 97,224 all other vouchers are available. Therefore, when all the expenditure were supported by bills and vouchers, it is highly improbable that the assessee without incurring the expenditure has claimed the amount of ₹ 97,224. When assessee has meticulously maintained bills and vouchers for almost the entire expenditure incurred absence of one bill would not lead to the conclusion that assessee has not incurred the expenditure. So far as the amount of ₹ 49,38,363 is concerned, it is not in dispute that the expenditure incurred is towards labour charges. Only because the expenditures were supported by self-made vouchers a part of the expenditure cannot be disallowed unless it is proved that the expenditure incurred is unreasonable or excessive compared to the turnover of assessee. It is quite evident that ld. CIT(A) does not dispute the fact that assessee has incurred the expenditure towards labour charges. He is only disputing the quantum of expenditure. Therefore, considering the nature of expenditure and keeping in view the turnover of assessee we hold that disallowance of a part of the expenditure claimed is not justified. As we have deleted the addition sustained by ld. CIT(A), the issue relating to validity of proceeding u/s 147 is reduced to mere academic interest. - Decided in favour of assessee.
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