2015 (6) TMI 1231

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... .05.2013 for Assessment Year 2007-08. 2. The assessee has raised the following grounds of appeal :- "1. That on the fact and circumstance of the case the ld. CIT(A) erred in confirming the disallowance of Rs. 1,40,461/- calculated @5% of total labour charges debited whereas regular books of accounts including bills & vouchers were produced before the AO in course of assessment proceeding wherea .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... made u/s 143(3) of the Act. A disallowance of Rs. 1,61,316/- out of labour charges amounting to Rs. 28,09,225/- debited in the Profit and Loss account on adhoc basis @5% was made. Similarly, he made disallowance of Rs. 4,17,105/- in respect of sundry creditors in the absence of any evidence of the transactions in spite of the confirmation furnished by the assessee. The AO had also made disal .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... any defect in the labour charges, purchases and transport charges claimed, the AO cannot make any addition on adhoc basis. The ld. CIT(A) has also not taken care of this aspect. In the circumstances and facts of the case, I find that without invoking the provisions of section 145(3) of the Act and without pointing out any defect in the books of account, no estimation of profit and no disallowance .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X