TMI Blog2013 (12) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... norganized - In the interest of justice it is appropriate to reduce the disallowance to 10 per cent – Partly allowed in favour of assessee. Disallowance u/s 40A(3) – Held that:- Payment was made to the supervisor, who was heading the group of labourers for the disbursement of payment to them - The payment to the supervisor has not been supported by vouchers - The assessee has not been able to show the veracity of the said payments made to labourers – Decided against assessee. - - - - - Dated:- 11-3-2013 - Order Vikas Awasthy (Judicial Member).- The appeal has been filed by the assessee impugning the order of the Commissioner of Income-tax (Appeals)-I, Coimbatore dated January 24, 2012. The brief facts of the case are that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Surat for audit and were not traceable. The Assessing Officer disallowed 20 per cent. of the expenditure incurred towards labour charges on estimate basis. Vide assessment order dated December 27, 2010 made additions on account of payments made to supervisor as well. Aggrieved against the assessment order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) after perusing the documents on record and taking into consideration the submissions made by the assessee dismissed the appeal of the assessee vide order dated January 24, 2012. Now, the assessee has come in the second appeal before the Tribunal assailing the order of the Commissioner of Income-tax (Appeals). Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it. A perusal of the order of the Commissioner of Income-tax (Appeals) shows that the assessee company was awarded a contract of levelling land measuring 1162 acres at Rs. 70,000 per acre for levelling, ramming, watering, fencing, etc. The assessee had engaged labourers from neighbourhood villages for execution of work and has utilised the services of nearly 1800 labourers for completion of the work. It is difficult to imagine that when the assessee has engaged such a large number of labourers from the neighbouring villages the assessee could not produce confirmation letters from any of them in support of its claim and when the assessee has undertaken work of such large magnitude, it had earned income of Rs. 9,080 only. Admittedly, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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