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2016 (4) TMI 898 - AT - Income TaxDisallowance invoking Section 40(a)(ia) - CIT(A) allowed the claim - Held that:- The Revenue contentions have no merit in considering the fact that so many vouchers were impounded in the course of survey, but has not considered them. We are also not inclined to accept the Revenue’s contentions that so much of expenditure was not incurred. Without the expenditure being incurred, the project could not be completed. In AY. 2005-06, the AO disallowed the expenditure as not vouched and also invoking Section 40(a)(ia) so much so on the turnover of 11.24 Crores, the income was determined at ₹ 3.76 Crores, which itself is very high in this line of business. In the given circumstances, the only option is to reject the books of accounts and estimate the income. In contract works, since, assessee has done work away from its area of operation, in Allahabad, estimation of income at 9% is reasonable. Further, if the ground 10 of Revenue in AY. 2006-07 is allowed, there will be reduction of turnover and consequent income. We are not able to understand why Revenue has taken that stand which will reduce the income. Be that as it may, we are of the opinion that Ld. CIT(A) has analysed the issues in detail and has come to correct decision in determining the issues and adjudicating rival contentions. We see no reason to differ from the findings, as Revenue has placed only arguments without any evidence in support. We find no merit in Revenue’s grounds and accordingly, they are rejected. - Decided in favour of assessee
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