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2017 (12) TMI 1780

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..... for disallowance is discrepancies noted in the vouchers maintained, wherein writing on the vouchers appeared to be the same person. Assessee had failed to maintain any muster roll or wage register. Also, no amount was deducted on account of Provident Fund and ESIC. The payees were also not verifiable. The case of assessee was that majorly payment was made through cheque. Merit in the aforesaid disallowance made by the authorities below. However, we restrict the same to 3% of labour charges. The grounds of appeal raised by the assessee are thus, partly allowed. - ITA Nos.457 & 458/PUN/2016 - - - Dated:- 15-12-2017 - Ms. Sushma Chowla, JM And Shri Anil Chaturvedi, AM Appellant by: Shri D.R. Barve Respondent by: Shri Mukesh Jh .....

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..... village area with the limited means and manpower without any proper infrastructure etc. 4. The only issue raised in the present appeal is against adhoc disallowance made out of labour charges. 5. Briefly, in the facts of the case, the assessee was carrying on the business of execution of turnkey jobs / projects of water supply schemes awarded by various Governments / Government Undertakings like Maharashtra Jeevan Pradhikaran, Maharashtra Industrial Development Corporation, Public Works Department-Goa State, Maharashtra Krishna Valley Development Corporation, Tapi Irrigation Development Corporation, etc. The assessee company was also engaged in the business of manufacturing of pipes required for the projects and the said pipes were us .....

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..... any such records; instead the assessee produced self prepared labour vouchers of Ashti and Aurangabad for verification. The Assessing Officer on verification of the said vouchers noted the following discrepancies:- a. The vouchers are self made documents. b. Many of the vouchers were not signed by the recipient. c. The handwriting of the signatories on various vouchers was same though the vouchers indicated the payment to different persons. d. The vouchers appeared to be fabricated as the revenue stamps pasted on the vouchers were new and appeared to have been recently pasted. e. The accountant and the authorized representative of the assessee was asked to reflect the entry of the few vouchers of wage payment in the ledger of .....

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..... the Assessing Officer has discussed about the deficiencies in the books of account as regards claim under labour expenses. The major deficiencies as pointed out by the Assessing Officer are that most of the claim had been made by way of self made vouchers. It was also noticed that details of recipients are not mentioned on the vouchers. Furthermore, writing on the vouchers appears to be of the same person. The appellant has also not maintained any muster roll or wage register. No amount has been deducted on account of PPF or ESIC. Also the payees are non-verifiable. These facts have not been disputed by the appellant also. I therefore feel that the Assessing Officer was justified in making disallowance at 5% of the total claim under the he .....

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..... cies noted in the vouchers maintained, wherein writing on the vouchers appeared to be the same person. Further, the assessee had failed to maintain any muster roll or wage register. Also, no amount was deducted on account of Provident Fund and ESIC. The payees were also not verifiable. The case of assessee was that majorly payment was made through cheque. In the totality of the above said facts and circumstances, we find merit in the aforesaid disallowance made by the authorities below. However, we restrict the same to 3% of labour charges. The grounds of appeal raised by the assessee are thus, partly allowed. 12. The facts and issues in ITA No.458/PUN/2016 are identical to the facts and issues in ITA No.457/PUN/2016 and our decision in .....

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