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2015 (8) TMI 1022 - AT - Income TaxAddition of Labour charges paid by way of cheques - CIT(A) restricted addition to 10% of the expenses - Held that:- The assessee itself has offered a sum of ₹ 2.00 crores to cover up deficiencies in respect of both cash and cheque payments. Hence the AO was not right in presuming that the above said offer would cover only cash payments. We have already noticed that the Ld CIT(A) also did not agree with the view taken by the AO that the entire cash expenses, which are not supported by primary evidences, should be disallowed. Under these set of facts, we are of the view that the present dispute should be settled by making some estimates. The dispute relating to disallowance of part of labour expenses would meet the ends of justice, if we restrict the disallowance to ₹ 2.00 crores (being the amount offered by the assessee) plus 10% of the labour expenses incurred by way of cheque. We order accordingly. The decision rendered by the Ld CIT(A) on this issue would stand modified accordingly. - Decided partly in favour of assessee. Disallowance of Repairs and Maintenance expenses - CIT(A) deleted the addition - Held that:- The assessee has incurred the expenses towards purchase of concrete silo. The Ld CIT(A) noticed that it formed part of “ready mix concrete plant” having no independent functioning. Before us, the Ld A.R submitted that the said part is required to be replaced frequently. Accordingly, the Ld CIT(A) held that the same is revenue expenditure. On consideration of the above facts, we do not find any infirmity in the order of Ld CIT(A) on this issue. - Decided in favour of assessee.
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