TMI Blog2019 (5) TMI 1941X X X X Extracts X X X X X X X X Extracts X X X X ..... , ground No.1 raised in appeal by the assessee is allowed for statistical purposes. Addition of labour payments - in-genuine payment - HELD THAT:- We observe that the Revenue has not conducted any specific enquiry or has not brought in any material on record to substantiate that these labour payments were not genuine. Just because thumb impression is there, it cannot be said that the transactions were not genuine since in India when the dealing is done with labourers, practicality demands that the money receipt is the thumb impressions to the concern labourers. Revenue should bring out cogent material for making such disallowances - As relying on [ 2014 (12) TMI 1397 - ITAT RAIPUR] tax liability cannot be fastened to the assessee by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid the taxes, for which certificates of Chartered Accountants were filed. Prayed that disallowance of Rs.10,91,652/- is unjustified and be deleted. 2. The learned Assessing Officer further erred in confirming the ad hoc disallowance of Rs.2,00,000/- made by the learned Assessing Officer out of labour payment which is without any basis. Prayed to delete the same. 2. The brief facts in this case are that the assessee is a partnership firm engaged in civil construction work filed its return of income on 30.09.2011 declaring total income of Rs.13,95,110/-. The case was selected for scrutiny through CASS and accordingly, notice u/s.143(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of verification. It is the contention of the Ld. AR of the assessee that certificates from Chartered Accountants was not accepted by the Ld. CIT(Appeals) and in the interest of justice, the Assessing Officer may verify the veracity of these certificates of the Chartered Accountants and for this limited purpose, the matter may be restored to the file of the Assessing Officer. 5. Per contra, the Ld. DR has placed reliance on the orders of the Sub-ordinate Authorities. 6. We have perused the case records and heard the rival contentions and we observed that in the case of the assessee, certificates of the Chartered Accountants was not accepted by the Ld. CIT(Appeals). On the similar issue in ITA No.69/RPR/2015 (supra.), the Co-ordinat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thumb impression without taking any proof of disbursement of wages to the labour. Further, the Assessing Officer noticed that complete addresses of the recipients are also not available in the muster roll. Under these circumstances, the genuineness of the expenditure cannot be fully proved beyond doubt and the Assessing Officer therefore made addition on the ground of labour payment expenses and added the same to the income of the assessee and the same was confirmed by the Ld. CIT(Appeals). 8. The Ld. AR of the assessee vehemently argued that these expenses were disallowed since there was thumb impression of the labour. But in a peculiar nature of such expenses, for the labourers, it is only the thumb impressions that are generally us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee-firm had furnished books of account and audited statement of accounts and the AO was not able to pin-point the defects in such documents, that the quantity of material used in labour charges incurred were certified from time to time by the competent authorities and the AO was not able to negate the claim made by the assessee. It is also found that the AO had not disputed about the labour and contingency payment though he had made an ad-hoc disallowance. We are of the opinion that the tax liability cannot be fastened to the assessee by the AO without bringing some positive evidence against the assessee on record, that the disallowance of addition has to be backed by some documentary/oral evidence which could prove that the claim made by i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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