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M/s. Shamjibhai G. Patel Versus ITO, Ward 9 (1) , Ahmedabad

2015 (9) TMI 385 - ITAT AHMEDABAD

Disallowance of outstanding labour charges to various contractors - Held that:- The assessee files a chart showing identical unpaid labour charges paid/accepted in assessment years 2008-09 to 2012-13; respectively.

We reiterate that these random cases duly confirm to have made available their services at respective BSNL offices. There is no dispute raised about their identity since identity cards form part of the case file. There are many other confirmations in the same backdrop of fa .....

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im in question of the outstanding labour charges of ₹ 29,37,728/- to have been incurred in carrying out his contractual assignments. The Revenue’s arguments on mere assumptions and presumptions accordingly stand rejected. The impugned disallowance is deleted. - Decided in favour of assessee. - ITA No. 590/Ahd/2011 - Dated:- 26-8-2015 - Shri G. D. Agrawal and Shri S. S. Godara, JJ. For The Assessee: Shri Tej Shah, A.R. For The Revenue : Shri Dinesh Singh, Sr. D.R. ORDER PER : S. S. GODARA, .....

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377; 1,29,53,407/- resulting in gross and net profit of ₹ 16,58,728/- and ₹ 6,83,015/-, @ 12.80% and 5.27%; respectively. He claimed labour charges of ₹ 73,95,983/- comprising of unpaid outstanding seems of ₹ 33,45,640/- relatable to February & March, 2007. As per Assessing Officer, this would enhance the corresponding expenses of the said months to be more than 50%. The assessee submitted a list of the payees comprising of 204 instances. Each-one involved sum of less .....

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; Surendranagar and employed this labour in the said activities. The Assessing Officer observed in assessment order dated 22/12/2009 that no evidence was forthcoming proving this expenditure to have wholly and exclusively incurred for the purpose of the business. He cited lack of details qua the payees services rendered along with muster rolls and wages etc. He opined that these labour charges were in the nature of accommodation entry for reducing taxable income. The reasons of all payment of le .....

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en submission was received in dak in which copies of confirmations with respect to some labourers were filed in this office. Xerox copies of confirmations were given of persons who figured nowhere in the list of the liabilities outstanding. Or the list of outstanding liability showed lesser amounts. On perusal of the copies of confirmations the AO is directed to delete the following amounts as per remarks given in the Amount with remarks column in the list below Sl. No. Name of the labour Amount .....

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red. 7 Mahendra Parmar-Rs. 48,628 In the list of AO the outstanding amount is shown at Sr.no. 128 at ₹ 12,963 and at Sr. No. 162 at ₹ 16,445 only. ₹ 12,963 + ₹ 16,445 is directed to be deleted. 8 Rajeshbhai Rathod-Rs. 49,065 In the list of AO the outstanding amount is shown at Sr.no. 171 at ₹ 15,789 only. ₹ 15,789 is directed to be deleted. 9 Amitbhai Kadiya ₹ 49,908 is directed to be deleted 10 Ketan Ishwarlal Kadiya ₹ 49,337 is directed to be del .....

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is directed to be deleted 16 Hasrnukhbhai Gajera This name is not there in the list of the AO hence not considered 17 Brijmohan Singh ₹ 48.3T2 is directed to be deleted. 18 Maheshbhai Chauhan Shown outstanding in the list only for ₹ 11,569 ₹ 11,569 is directed to be deleted. 19 Manoj Pujari - ₹ 37,629 Shown outstanding in the list in the assessment order for ₹ 19,843 at S.no14 ₹ 19,843 is directed to be deleted. 20 Mohammed Rafi Shaikh This name is not there i .....

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submissions the AO out of addition made of ₹ 33,45,640 is directed to delete ₹ 4,07,912 as per narration in the column 'Amount with Remarks' given in the table above based on the confirmations furnished by the appellant. However the balance addition of ₹ 29,37,728 (Rs.33,45,640 - R.s.4,07,912) is upheld because despite opportunities given by the AO and this office the observations of the AO were not contradicted by the appellant like no agreement entered with sub-contr .....

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the addition is upheld of ₹ 29,37,728. 5. We have heard both the parties and perused the case file. The assessee files a chart showing identical unpaid labour charges of ₹ 25,04,780/-, ₹ 24,44,736/-, ₹ 8,95,620/-, ₹ 13,61,236/- and ₹ 79,034/- paid/accepted in assessment years 2008-09 to 2012-13; respectively. Its paper book page 16 contains confirmation of one of the payee Shri Sanjay Barot in support of the gross outstanding balance totaling to ₹ 49,73 .....

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