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2019 (3) TMI 645 - AT - Income TaxDisallowance of expenses for purchase of materials and labour expenses - HELD THAT:- With respect to the purchase of materials, we find that the AO in the order has accepted that the material purchased was essential requirement for development of land and building and in view of the discrepancies noted he made an adhoc disallowance of 20% which was reduced to 10% by CIT(Appeals). AR has placed the summary of material purchased which reveals that it contains the details of suppliers, bill number, material amount and quantity. Payments have been made by cheques. Revenue has not pointed any evidence to show that the payments have not been made by cheque but have only proceeded on the basis of presumption. In the present case no disallowance of expenses on account of material is called for. We, therefore, direct to delete the disallowance on account of material purchased of ₹ 11,13,403/-. As far as the disallowance of labour charges is concerned before us the AR has not pointed out any fallacy in the findings of CIT (Appeals) and therefore to the extent of disallowance of labour expenses, we find no reason to interfere with the order of Commissioner of Income Tax. - Appeal of assessee is partly allowed.
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