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2018 (11) TMI 1432 - AT - Income TaxAddition being difference in contract receipts actual receipts v/s contract receipts as shown in the Form-16A (TDS certificate) - Held that:- We find that the total receipts are not taxable as only profit element is required to be taxed. Therefore considering the various decisions of Coordinate Benches we consider 10% net profit of the amount ofRs.10,58,063/- as profit earned by the assessee in respect of these gross receipts as per contract. The AO directed to work out the net profit accordingly and the balance addition is therefore deleted. This ground of appeal is partly allowed. Addition of contract receipts - There is a difference on account of opening balance in respect of ledger accents with the assessee and ledger accounts of Vaman Prestressing Co. Pvt. Ltd., hence the amount of ₹ 5,29,764/- has been rightly added by the AO and confirmed by the CIT(A). The contention of the AR that only net profit is to be taxed is without any basis as this difference is on account of actual receipts, hence, the said income remained to be taxed, accordingly this ground of appeal of the assessee is dismissed. Addition towards kitchen expenses - no pointing out any specific defects in the vouchers made by the AO - Held that:- No merit in confirmation of such addition, accordingly same is directed to be deleted, this ground of appeal of assessee is therefore allowed. Addition made towards labour expense - Held that:- AO has made disallowance of 75,000/- pertaining to labour expenses out of total expenses of ₹ 57,05,271/-. However, we find that disallowance made without any specific defect pointing out by the AO, therefore such disallowance of ₹ 75,000/- are directed to be deleted. Addition made towards travelling expenses - Held that:- Disallowance of 20% considering the same as personal in nature, hence, the element of personal use of travelling does not denied. No infirmity in the order of CIT(A), accordingly the same is confirmed. Therefore, this ground of appeal is dismissed. Addition made towards vehicle expenses - Held that:- AO has made disallowance @10% considering the personal element in respect of use of vehicles therefore we do not find any infirmity in the order of CIT(A), accordingly the same is upheld. Therefore, this ground of appeal is dismissed.
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