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2016 (5) TMI 1084 - AT - Income TaxDisallowance being 20% of the payment made to sub-contractors - Held that:- We concur with the findings of the Ld. CIT(A) that no sub contract work was executed by the three sub contractors and infact excess payment was made to them. Further we concur with the Ld. CIT(A) in holding that though sub contract work has not been carried out by the three sub contractors, it has been carried out by some other parties and in the view thereof it is fair and reasonable to disallow 20% of the amount paid on account of subcontract work. - Decided against assessee Addition on account of sale of scrap - Held that:- The facts emerging in the present case are that undeniably during the carrying on of the business of construction some scrap of iron and aluminium pieces is generated as also empty bags. While the assessee’s contention is that this scrap is reused in the construction business and the empty bags are used by the labour for resting and other purposes and no scrap is therefore sold, the case of the revenue is that the explanation of the assessee is not plausible and some scrap must have been sold by the assessee. We find no infirmity in the order of the Ld. CIT(A) in this respect and agree with his findings that it is impossible to believe that no scrap was sold during the year and that the entire scrap is reused in the business of the assessee. We therefore uphold the order of the Ld. CIT(A) sustaining the addition made on account of sale of scrap - Decided against assessee
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