2012 (10) TMI 1148

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.... appeal: "1. On the facts and circumstances whether the Ld. CIT(A) was right in directing the AO to make disallowance @ 20% i.e. on estimate basis when the assessee has failed to produce bills/vouchers amounting to ₹ 40,84,809/- in respect of expenses under the head "Material Purchases". 2. On the facts and circumstances whether the Ld. CIT(A) was right in directing the AO to make disallowance @ 10% instead of 20% made by the A.O. when the assessee has failed to produce bills/vouchers in respect of expenses under the head "Site Expenses". 3. On the facts and circumstances whether the Ld. CIT(A) was right in directing the AO to make disallowance on estimate basis when the assessee has failed to produce proper bills/vouchers and n....

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.... 30,56,45,984/- and has claimed depreciation of ₹ 73,60,165/- and interest & salary paid to partners of ₹ 45,37,758/- and other claims have also been made. The assessee was asked to file details of material consumed, labour account, site expenses and Miscellaneous expenses etc., which were filed by the assessee. It was observed by the AO that certain supporting bills and vouchers were not there in the case of material consumed and it was explained with regard to the Dust & Bazri etc. for which bills were not readily available, the AO made an addition of ₹ 46,84,809/-. As regards the labour account, the assessee had filed complete details of labour muster rolls of total amount paid to the tune of ₹ 4,82,25,191/-. The ....

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....etc. which were not readily available, the AO was not justified in disallowing the whole amount of the expenses so claimed. As regards the labour expenses, the assessee had submitted muster rolls, which are having complete details of the labour and the proof of having received the labour charges by the said labour. The said amount is not under dispute and the AO was not justified in making the addition and the Ld. CIT(A) in turn, is not justified in confirming the said addition. As regards the site expenses, the assessee had submitted all the details with regard to site expenses and misc. expenses. He further stated that since the assessee has submitted all the details and no defect in the same has been pointed out, the AO was not justified....