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2015 (10) TMI 1399 - ITAT AHMEDABADDisallowance of labour expenses - Held that:- Assessee firm is in business of project development etc. for immovable property. Assessing Officer observed that labour cost was proportionately higher as compared to usual rate in real estate business. He has shown higher labour payments in comparison to the payment for materials. The entire labour expenditure of ₹ 38,48,068/- with regard to Saket-II Project plus ₹ 18,28,063/- with regards to Saket-III Project were claimed to be incurred by assessee. The same could not be verified because all payments were not through cheques and cash payments have also been made. Accordingly, disallowance was made on this account. In appeal, CIT(A) restricted the disallowance to 10% of labour expenses of ₹ 56,76,131/-. Taking all facts and circumstances, disallowance is restricted to 5% instead of 10% done by CIT(A). Assessing Officer is directed accordingly. - Decided partly in favour of assessee.
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