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2017 (12) TMI 907 - AT - Income TaxAddition on account of labour charges as bogus expenses - genuineness of the payment - Held that:- As the ld. Counsel for the assessee has pointed out that the liability to deduct TDS was on the principal of M/s Nilkanth Ferro Ltd. and the assessee was merely a sub-contractor and, therefore, do not require to observe the provisions of ESI and PF and TDS, we agree on this principle but we have observed that assessee has not proved the genuineness of the payment either before the AO or before the ld CIT(A). Apart from this, it is not an ad hoc disallowance made by the AO therefore the arguments of the ld counsel that without rejecting books of accounts, the AO cannot make addition, is not tenable. That is, there is no need to reject the books of account. The overtime register was not authenticated by M/s Nilkanth Ferro Ltd. The director of M/s Nilkanth Ferro Ltd has stated that no overtime wages was paid. Therefore, based on the above discussion, we are of the view that the addition made by the AO and confirmed by the CIT(A), is justified. - Decided against assessee.
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