TaxTMI 
TaxTMI 
2017 (9) TMI 315
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....which was an appeal filed by the assessee before the tribunal. ITA No. 03/2013 is in respect of ITA 127(Asr)/2012 which was an appeal preferred by the department before the tribunal. 2. On 03.07.2013, when the present appeals were admitted to hearing, the following substantial questions of law were framed for consideration of this Court:- i) Whether in the facts and circumstances and in law, the Hon'ble ITAT was justified in sustaining the addition of Rs. 4,00,000/- only out of Rs. 46,84,809/- with regard to material consumed when there was no supporting bills/vouchers? ii) Whether the findings of the Hon'ble ITAT as regards the bills of sand, dust and Bajri etc. were submitted and payments made to various persons were available with the....
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....he head of materials consumed in respect of sand, dust and bajri for which no supporting bills/vouchers were presented by the assessee. It would be pertinent to note that under the head 'materials consumed', the assessee had debited Rs. 16,32,99,362/-. It is further pertinent to note that the total expenditure on sand, dust and bajri was to the tune of Rs. 2,02,11,961/- as per the details submitted by the assessee to the Assessing Officer. Out of this amount, there were no supporting bills/vouchers in respect of an amount of Rs. 46,84,809/- and to that extent, the Assessing Officer made a disallowance and added back the said amount to the income of the assessee. The Commissioner of Income Tax (Appeals) reduced the addition to Rs. 9,36,962/-....
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.... The disallowance to the extent of 20% by CIT(A) was in the view of the tribunal excessive and the tribunal limited the same to Rs. 4.00 lacs which according to the tribunal appeared to be justified. The learned counsel for the revenue submitted that the finding of the tribunal is not supported by any material on record. As per the assessment order, it is evident that no supporting bills/vouchers etc., had been submitted in respect of sand, dust and bajri to the extent of Rs. 46,84,809/-. The learned counsel for the assessee submitted that the fact that the assessee was a big contractor and had constructed the buildings was sufficient to indicate that sand, dust and bajri had been consumed and, therefore, the disallowance by the Assessing O....
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....orted by any bills/vouchers etc. It may be pointed out that the total amount claimed under the head 'site expenses' was Rs. 87,76,558/- and that for this entire amount of Rs. 87,76,558/-, no bill or voucher had been submitted by way of supporting evidence. The Assessing Officer, however, did not disallow the entire amount, but, limited the disallowance to 20% which worked out to Rs. 17,55,312/- and the same was added back to the income of the assessee. The CIT(A) reduced the disallowance to 10%, that is, Rs. 8,77,656/-. The said CIT(A) noted the arguments on behalf of the assessee that the disallowance made by the Assessing Officer was excessive and also noted the fact that there was no denying that such expenditure must have been incurred ....
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....on No. (iv). 13. Now coming to the last question No. (iv) which relates to labour expenses. The Assessing Officer had added Rs. 24,11,260/- on account of alleged non-verifiable labour expenses made in cash. CIT(A) confirmed the said addition, however, the tribunal deleted the said addition. From the impugned order, it appears that the tribunal was impressed by the fact that the muster roll which had all the details of the labour and payments had been produced and there was no dispute with regard to the same. Therefore, the Assessing Officer, according to the tribunal, was not justified in making any addition without pointing out any defect in the same. We may point out that the assessee had debited an amount of Rs. 4,82,25,191/- under labo....