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TMI Blog2013 (6) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... ition and after hearing both the sides the delay in filing of this appeal by the assessee is condoned. 3. Facts of the case, in brief, are that the assessee is an individual engaged in the business of Civil Construction and filed his return of income on 31-10-2007 declaring total income of Rs.3,43,790/-. During the course of assessment proceedings the Assessing Officer noted from the profit and loss account that the assessee has shown consumable purchases of Rs.13,58,948/-. From the details furnished by the assessee to substantiate the above purchases the Assessing Officer noted that the purchases to the tune of Rs.1,00,909/- are not supported by any evidence such as bills or evidence of payment etc. The Assessing Officer therefore disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand report of the Assessing Officer and the objection of the assessee to the same the Ld. CIT(A) restricted the addition to Rs.19,42,515/- by holding as under : "4.8 I have considered the submissions of the appellant and material available on record. It is noticed that whereas the assessment order was passed basically in an adhoc manner disallowing practically all the labour charges made in cash, the Assessing Officer has carried out verification of the labour charges expenses vis-à-vis the vouchers produced by the appellant, along with ledger copies as additional evidence during the appellate proceedings. The Assessing Officer carried out verification of these vouchers with reference to ledger and cash book and has pointed out gl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om such payment. It is stated that if the disallowance of Rs.50 lakhs made by the Assessing Officer is sustained, then it would result in net profit out of the labour contract of Rs.55,86,690/- on the turnover of Rs.89,72,802/- which was beyond common sense, i.e. totally unreasonable. The appellant has cited the assessment order for A.Y.08-09 i.e. the next year in which also similar defects were noted, but only the estimation of net profit was made. 4.10 I have carefully considered the appellant's explanation on these discrepancies specifically pointed out by the Assessing Officer after conducting thorough verification of the vouchers produced with" reference to ledger and cash book. Since on numerous occasions there is a difference in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case. 2. The Learned Commissioner of Income-tax (Appeals) grossly erred in allowing the assessee's appeal instead of confirming the assessment. 3. The learned Commissioner of Income-tax (Appeals) grossly erred in restricting the disallowance of labour expenses to Rs.19,42,5157- mainly on the specific discrepancies pointed out in the remand report and in failing to appreciate that the assessee could not substantiate genuineness of other payments, which also contained the similar defects/ discrepancies as observed in the remand report by the Assessing Officer. 4. The learned Commissioner of Income-tax (Appeals) ought to have drawn adverse inference on the remaining claim in respect of labour expenses as well since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Ld. CIT(A). He submitted that in the subsequent year the same Assessing Officer on the same set of facts has estimated the income at 8% of the total turnover. He submitted that if the addition sustained by the CIT(A) is accepted the profit percentage comes to 25% which is not possible in the line of business carried on by the assessee. He submitted that the assessee during the impugned assessment year has carried out the work of providing labour to Magarpatta Township Development and Construction Company Pvt. Ltd. and Maharastra Jeevan Pradhikaran work at Kolhar. He submitted that the nature of work involved in Magarpatta Township are Construction of building for residential purposes where the main work involved are for providing labo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer for his verification. The Assessing Officer after due verification gave his remand report pointing out the discrepancies. Therefore, the accounts of the assessee are not at all reliable and the addition made by the Assessing Officer under the facts and circumstances of the case should be upheld. 8. We have considered the rival arguments made by the both the sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. We have also considered the numerous decisions relied on by the ld. Counsel for the assessee which have been relied upon in the written submission. There is no dispute to the fact that the assessee, during the course assessment proceedings, has not furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X
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