https://www.taxtmi.com/caselaws?id=362059 The Tribunal partially allowed the appeal, reducing the disallowance of labor charges to 25% of the claimed amount. This decision was based on the recognition of the major expenditure incurred by the assessee on labor charges to earn income from labor contracts. The Tribunal found that despite doubts raised by the authorities regarding the genuineness of the wages due to non-deduction of PF & ESI contributions, the net profit of the business after disallowance exceeded normal rates, indicating that the wages were not entirely bogus. This adjustment resulted in a fair and proper net profit margin for the assessee. en-us Wed, 13 Jun 2018 00:00:00 +0530 Mon, 18 Jun 2018 12:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=362059 The Tribunal partially allowed the appeal, reducing the disallowance of labor charges to 25% of the claimed amount. This decision was based on the recognition of the major expenditure incurred by the assessee on labor charges to earn income from labor contracts. The Tribunal found that despite doubts raised by the authorities regarding the genuineness of the wages due to non-deduction of PF & ESI contributions, the net profit of the business after disallowance exceeded normal rates, indicating that the wages were not entirely bogus. This adjustment resulted in a fair and proper net profit margin for the assessee. Case-Laws Income Tax Wed, 13 Jun 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=362059