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2015 (10) TMI 531 - ITAT AHMEDABADAddition on account of alleged bogus labour charges - Held that:- It is an undisputed fact that Assessee is engaged in the business of polishing of diamonds on job work basis and the Assessee receives the payment which is credited as its Income. It is also a fact that makes the payment for labour which is treated as an expense. In the present facts we find that though the Assessee has submitted the explanation but has also not fully proved the expenses and at the same time the Revenue has also proceeded to make the disallowance on an estimated basis. We further find that the Assessing Officer had made no enquiry in the case of 2 parties whose addresses were furnished to him. In such circumstances we are of the view that disallowance was rightly made but however considering the facts stated hereinabove we are of the view that the disallowance made by the Assessing Officer is on a higher side. Thus disallowance of ₹ 4 lacs would meet the ends of justice and therefore we accordingly direct the disallowance be restricted to ₹ 4 lacs. - Decided partly in favour of assessee.
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