2014 (1) TMI 592

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.... this appeal, the assessee appellant has called into question correctness of order dated 19th October 2010, passed by the learned Commissioner (Appeals), in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for the assessment year 2006-07. Grievance of the assessee is against rejection of the books of account and yet making disallowances from labour expenses and cartage ex....

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....equired to do the job for which assessee has billed Amul. As there was a variance in the number of persons so worked out vis-à-vis the number of persons actually employed by the assessee, he was of the view that books of account are not reliable and do not show the correct picture of affairs. As for carting expenses, the Assessing Officer was of the view that vouchers donot appear to be gen....

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....al and prayed for deleting of disallowance. Learned CIT(A) upheld the rejection of books of account in principle, but deleted the disallowance to the extent of Rs 1,68,830 out of labour charges, and to the extent of Rs 6,61,633 out of cartage expenses. The assessee is not satisfied and is in further appeal before us. 3. We have heard the rival contentions, perused the material on record and dul....

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....d position that these seemingly vague local enquiries, even if these inquiries actually took place, were neither place on record or confronted to the assessee. In any case, there is a direct confirmation from Amul which is on record and this confirmation is contrary to the said local enquiries. There may not have been any cartage expenses in the last year because there may not have been any such w....