Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 661 - AT - Income TaxDisallowance of labour charges - Held that:- Considering particularly the claim that labour charges for more than 8 months are outstanding at the year end and the payment already made in the present year is by way of cash, we feel that some disallowance out of labour charges is justified. We feel that if the preceding year is considered as a guiding factor, the labour charges should be 22.69% of Receipts of ₹ 90.35 Lacs as in that year and as a result, the labour charges for the present year comes to ₹ 20.50 as against claimed by the assessee of ₹ 23.82 Lacs. We have already noted that since this is not a case of the assessee that any assessment of such preceding or succeeding year was completed u/s 143 (3) and in the absence of that, such preceding or succeeding year cannot be a guiding factor. Considering te facts in totality, we feel that in the facts of the present case, disallowance of ₹ 5.95 lacs being 25% out of labour charges will meet the ends of justice. Addition of sundry creditors - Held that:- Confirmation is available of only 5 parties having outstanding of ₹ 3,70,20/- and about the remaining parties, it is stated by the assessee that it is not possible for the assessee to trace these creditors since period of nine years has elapsed and many of them have closed their business and others have disposed of their records. But the assessee has not brought even this evidence on record that when and how the amount was paid by the assessee to these creditors as per the records of the assessee and what is the last available address of these creditors along with PAN so that the department could have located these creditors. Regarding the five parties for whom confirmation have been submitted by the assessee also, the Ld. CIT(A) has noted that creditworthiness of these creditors was not established. Still, the CIT (A) has made an addition of only ₹ 15 Lacs and not of the entire amount of Creditors. No infirmity in the order of Ld. CIT(A) on this issue
|