TaxTMI 
TaxTMI 
2015 (9) TMI 385
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.... outstanding labour charges to various contractors. He carries out electrical contract works. His total contract receipts in relevant previous year are of Rs. 1,29,53,407/- resulting in gross and net profit of Rs. 16,58,728/- and Rs. 6,83,015/-, @ 12.80% and 5.27%; respectively. He claimed labour charges of Rs. 73,95,983/- comprising of unpaid outstanding seems of Rs. 33,45,640/- relatable to February & March, 2007. As per Assessing Officer, this would enhance the corresponding expenses of the said months to be more than 50%. The assessee submitted a list of the payees comprising of 204 instances. Each-one involved sum of less than Rs. 20,000/-. It transpires that these 204 names are repetitive in nature e.g. payee no. 1 Jagdish Solanki fin....
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.... Xerox copies of confirmations were given of persons who figured nowhere in the list of the liabilities outstanding. Or the list of outstanding liability showed lesser amounts. On perusal of the copies of confirmations the AO is directed to delete the following amounts as per remarks given in the Amount with remarks column in the list below Sl. No. Name of the labour Amount with Remarks 1 Sanjaybhai Patel Rs. 49,977 is directed to be deleted 2 Korat Kiran Nagjibhia This name is not there in the list of the AO hence not considered 3 Kamleshbhai Thumar Rs. 31,852/- is directed to be deleted 4 Subhashbhai J. Patel This name is not there in the list of the AO hence not considered. 5 Sanjaybhai ....
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....to be deleted. 19 Manoj Pujari - Rs. 37,629 Shown outstanding in the list in the assessment order for Rs. 19,843 at S.no14 Rs. 19,843 is directed to be deleted. 20 Mohammed Rafi Shaikh This name is not there in"1 the list of the AO hence not considered. 21 Ghanshyambhai Chauhan - Rs. 49,015 Shown outstanding in the list at S. no. 199 for Rs. 14,875 only Rs. 14,875 is directed to be de/eted. 22 Imran Khan Pathan - Rs. 49, 743 Shown outstanding in the list at S. no. 194 for Rs. 17, 723 only. Rs. 17,723 is directed to be deleted. I 23 Sanjaykumar Ishwarbhai Barot - Rs. 49, 737 This name is not there in the list of the AO hence not considered. 7. After going through rival submissions the....
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....Rs. 16,495/- at Sr. nos. 19, 119 and 175 of the above extracted chart. The same duly tallies with the corresponding ledger account at page 35 of the paper book. We proceed further and notice similar proofs qua payments outstanding balance of Rs. 49,676/- in case of Kiran Patel comprising of Rs. 19,120/- at # 22 Rs. 17,644/- at # 94 and Rs. 12,912/- at # 176; respectively. Similar is the case of yet another payee Shri Vipul Limbaciya submitting confirmation for Rs. 48,293/- comprising of Rs. 16,528/- at # 39, Rs. 18,785/- at # 85 and Rs. 12980 at # 204; respectively. The very payees happen to be the same for succeeding assessment year 2008-09 at pages 39-41 of the paper book. We reiterate that these random cases duly confirm to have made ava....