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2017 (12) TMI 1780 - ITAT PUNEDisallowance of Labour Charges - AO found certain discrepancies in the vouchers so maintained and as the assessee had failed to substantiate expenses made under the head ‘site expenses’ and also not maintained any muster roll or control register to monitor the said expenses and disallowed 5% of expenses - HELD THAT:- The assessee had incurred labour expenses at various sites totaling ₹ 5.02 crores. Revenue has not controverted the findings of CIT(A) in this regard. Now, the question which arises in the present appeal is disallowance made out of said labour charges by the authorities below. The reason for disallowance is discrepancies noted in the vouchers maintained, wherein writing on the vouchers appeared to be the same person. Assessee had failed to maintain any muster roll or wage register. Also, no amount was deducted on account of Provident Fund and ESIC. The payees were also not verifiable. The case of assessee was that majorly payment was made through cheque. Merit in the aforesaid disallowance made by the authorities below. However, we restrict the same to 3% of labour charges. The grounds of appeal raised by the assessee are thus, partly allowed.
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