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TMI Blog2015 (10) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... claring total income of Rs. 1,47,475/-. The case was selected for scrutiny and thereafter the assessment was framed u/s. 143(3) order dated 26.12.2008 and the total income was determined at Rs. 14,66,160/-. Aggrieved by the order of A.O, Assessee carried the matter before Ld. CIT(A). Ld. CIT(A) dismissed the appeal of the Assessee vide order dated 17.03.2010. Aggrieved by the order of ld. CIT(A) Assessee is now in appeal before us and has raised the following grounds:- 1. The learned CIT (Appeals), Valsad has erred in confirming the order of the ITO, Ward 4, Navsari in making addition to the extent of Rs. 13,18,985/- on account of alleged bogus labour charges, on misleading, baseless, arbitrary an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id 1. Maganbhai P. Nai Rs.2,11,000/- 2. Chatrabhuj R. Soni Rs.3,40,089/- 3. Tulsibhai K. Doda Rs.0,79,996/- 4. Shri Hanjaribhai Koli Rs.1,79,300/- 5. Natvarbhai Thakor Rs.2,06,700/- 6. Pirabhai Patel Rs.1,81,600/- 7. Bhutabhai J. Patel Rs.0,48,000/- 8. Pragjibhai R. Bhimani Rs.0,24,000/- 9. Shri V.G. Shah (Cash Payment) Rs.0,24,000/- 10. Shri B.J. Patel (Cash Payment) Rs.0,24,000/- Total Rs.13,18,685/- On verification of the bank statement of the parties to whom the payments were made, A.O noticed that in majority of the accounts the money which was received by them from Assessee on account of labour payments were transferred to account of few different persons instead of being withdrawn of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee and upheld the disallowance made by the A.O by holding as under:- 2. DECISION: The Assessing Officer disallowed Rs. 13,18,685;- being labour charges paid to ten labourers on the ground that out of ten parties, three parties were not available for cross verification to whom major amounts were paid. Although adequate opportunity was afforded the appellant failed to produce the parties to whom labour charges were paid. Assessing Officer also verified the Bank Accounts of the entire labour contractors. In majority of cases, cheque from appellant was deposited into the Bank account and no cash was withdrawn to make the payment to actual worker. From labour contractor money were transferred to third parties and final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of polishing of diamonds on job work basis and the Assessee receives the payment which is credited as its Income. It is also a fact that makes the payment for labour which is treated as an expense. It is also a fact that during the course assessment proceedings, A.O asked the Assessee to produce the labourers to prove the genuineness of payments and it is the Assessee's submission that 3 parties could not be produced since they had shifted to the native place but had furnished the addresses of two of the 3 parties to the A.O. The aforesaid submissions of the Assessee has not been controverted the Revenue. We also find that A.O in the assessment order has noted that Shri Lila Ram Devasi has stated to have received the bearer c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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