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2022 (11) TMI 607 - AT - Income TaxAdditions u/s. 69A - unexplained expenditure on the basis of District Valuation Officer’s report - AO while referring the case for DVO u/s.142A, the assessing officer has not doubted the books of account maintained by the assessee - HELD THAT:- We are of the considered view that the assessment year involved herein is A.Y. 2010-11 which is prior to the insertion of sub-section (2) to Section 142A by the Finance Act, 2014 with effect from 2014. Without rejection of books of account the assessing officer ought not to have referred the matter to DVO to determine the cost of construction of the Project of the assessee. Therefore the ground raised by the Revenue does not find any merit and the addition made u/s. 69A deleted by the CIT(A) is hereby upheld. Addition u/s. 40(a)(ia) - HELD THAT:- Without looking into these details, the assessing officer made disallowance u/s. 40(a)(ia) which is arbitrary. CIT(A) after verification of the details have deleted the additions which does not require any interference by us. Therefore Ground is devoid of merits and the same is rejected. Adhoc disallowance of labour expenses - HELD THAT:- The assessee produced all the details namely Ledger account, bills/vouchers and Muster Roll of the employees who worked for the construction project. It is seen from record, the same have been produced before the AO but without assigning any good reason, the A.O. has made an adhoc disallowance at 20%. Therefore the addition is without any legal basis and therefore the deletion made by CIT(A) is hereby upheld.
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