TaxTMI 
TaxTMI 
2016 (4) TMI 700
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....appeal:- [1] The Ld. CIT (A) has erred in confirming the disallowance of the following expenses through the total income of the collective disposal of labour of its members is deductible u/s. 80P(2)(vi) of the I. T. Act. Net Profit as per Profit and Loss A/c. Rs.1,56,991/- Labour Expenses Rs.5,00,000/- Not allowable Expenses Rs.3,33,192/- Total Rs.9,90,183/- [2] The Ld. CIT (A) is also erred in disallowing the labour expenses of Rs. 5,00,000/- is not legal. The appellant submits that separate disallowance is not required as the income of the appellant is deductible u/s. 80P(2)(vi) of the I. T. Act under the head " Collective Disposal of Labour of its members". [3] The appellant th....
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....We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the AO observed that the issues raised by the AO in the original assessment order dated 08/12/08/2014 still stood unsupported. It was observed that the genuineness of the transaction of the labour expenses, the assessee could not furnish any support evidence. Further, it is observed that the notice to this effect was given to the assessee but the assessee could not substantiate. On appeal to the ld.CIT(A), the ld.CIT(A) has recorded at page No.2 of his order as under:- Date of issue of notice Date of hearing fixed Mode of service Response from appellant 23/03/2015 12/05/2015 By....
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....for deciding the matter afresh, after making necessary verification and allowing due opportunity of hearing to the appellant. 2.4. During the course of set aside assessment proceedings, the AO issued various notices which have been discussed in the assessment order itself and also issued a show cause notice. However, the AR of the appellant submitted that the books of accounts are lost and in its support he filed the affidavit. It was also observed that the books of accounts of the appellant has not been got audited as it was the Labour Co-operative Mandli. Since no books of accounts were produced nor any vouchers bills for their claim were produced, therefore, the claim of expenses were not verifiable in absence thereof. Thus, the....
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.... dismissed. 3. The third ground of appeal is as under.- "The appellant therefore requests that the additions made by the Ld. AO should be deleted u/s. 80P(2)(vi) of the Act." 3.1. Decision: I have considered the facts of-the case and contention of the appellant. The ground of appellant with regard to claim of deduction u/s. 80P(2)(vi) of the I. T. Act, which is in respect of the income derived from collective disposal of the labours of its members. However, there is nothing on record to verify the claim of the appellant under the specified provisions. Since, there is the disallowance of penalty and unexplained labour expenses for which the eligibility for the deductions has not been substantiated, thus, w....