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2015 (10) TMI 797 - ITAT HYDERABADRejection of books of account - AO estimated the income at 12.5% of the gross bill based grounds as payments made to labourers are not verifiable and TDS not effected on transport payment - Held that:- We find that the Assessing Officer himself confirmed the fact of producing proper bills and vouchers in a letter issued by him on 9.12.2011. Further, the names and addresses of the labourers from whom payment vouchers were obtained are available on record. However, the Department has taken a plea that the CIT(A) has given relief in this case without giving an opportunity to the Assessing Officer or without calling for any remand report. Since the assessee has proved that it has produced proper bills/ vouchers and the Assessing Officer has confirmed the availability of relevant names and addresses of the labourers vide his letter dated 16.12.2012, hence it is not necessary for the CIT(A) to ask for a remand report. We find that due to discrepancies found in the accounts, the Assessing Officer has estimated the income at 12.5% of the gross bills minus recoveries and rejected the books of account. Taking a consistent view, as in the decision of Sainath Estates Pvt. Ltd. (2013 (9) TMI 528 - ITAT Hyderabad ) we direct the Assessing Officer to restrict the disallowance to 5% of the labour payments. - Decided partly in favour of revenue.
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