TMI Blog2013 (10) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 - - - Dated:- 14-10-2013 - M. R. Shah And Sonia Gokani,JJ. For the Appellant : Mr. Manav A. Mehta, Advocate ORDER ( Per : Honourable Mr. Justice M. R. Shah) 1.00. Present Tax Appeal has been preferred by the appellant - revenue challenging the impugned judgement and order passed by the learned Income Tax Appellate Tribunal [hereafter referred to as the Tribunal for short] in ITA No.1788/Ahd/2009 dated 5/4/2013 with respect to AY 2006-07, by which the learned tribunal has dismissed the said appeal preferred by the revenue confirming the order passed by the learned CIT(A) deleting addition of Rs.53,59,150/- made by the AO on account of disallowance of sub-contractor expenses as well as deleting addition of Rs.12,85,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance of entire hiring charges of Rs.12,85,000/-, the assessee preferred an appeal before the CIT(A) and the learned CIT(A) vide order dtd. 16/2/2009 allowed the said appeal deleting disallowance of Rs.53,59,150/- with respect to sub-contractors expenses and deleting disallownace of entire hiring charges of Rs.12,85,000/-. 5.00. Feeling aggrieved by and dissatisfied with the order order passed by the CIT(A), revenue preferred an appeal before the ITAT and by the impugned judgement and order, the learned ITAT has dismissed the said appeal, which gives rise to the present appeal. 6.00. Mr.Manav Mehta, learned counsel appearing on behalf of the appellant revenue has vehemently submitted that the learned ITAT has materially erred in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was the employee of the assessee. 7.02. While deleting addition of Rs.53,59,150/-, the learned CIT(A) has observed and held as under :- I have considered the facts of the case, findings of the AO as also the submissions made by the appellant. First of all, it is seen that during the year under consideration the gross profit of the appellant has increased from 4.50% to 7.14% and the net profit before appropriation has also increased to 3.60% from 2.145 in the earlier year. It is also seen that the appellant has fully discharged its onus of providing the sub contract expenses by submitting the complete names, address, PAN, confirmations, IT returns and bank statements of the sub-contractors as also the details of TDS and proof for payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub contract expenses of Rs.10,98880/- paid to him. I agree with the appellant that on account of some technical problem at a site a sub contractor can be called for his expertise and for which it any amount is paid to him over and above the sub contract work of some other site allotted to him, the sub contract expenses does not become non genuine. It is also seen that the AO has not disallowed the sub contract expenses paid to Shri Atulbhai M. Multani and thus, he has accepted the genuineness of the payment made to him and hence I am of the opinion that it cannot be a ground for disallowing 25% of the total sub contract expenses. Hence, considering the fact that the book results of the appellant have improved considerably during the curr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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