TaxTMI 
TaxTMI 
2019 (3) TMI 645
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..... 2011-12 on 30-09-2011 declaring total income at Rs. 1,16,71,780/-. The case was selected for scrutiny and thereafter the assessment was framed u/s 143(3) vide order dated 25-03-2014 and the total income was determined at Rs. 1,45,89,060/-. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A), who vide order dated 05-02-2016 (in Appeal No. 57/14-15) granted partial relief to the assessee. Aggrieved by the order of Ld. CIT(A), assessee is now in appeal before us and has raised the following grounds : "1. That under the facts and the law, the learned Commissioner of Income Tax (Appeals) erred in confirming the disallowance of Rs. 5,67,302/- i.e. 20% of Rs. 28,36,514/-, out of labour expenses made by the ld. AO on adho....
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....r was of the view that possibility of claiming expenses at higher side to reduce the income was not ruled out. He accordingly disallowed 20% of such labour expenses and made addition of Rs. 5,67,302/-. With respect to the expenses on material etc. Assessing Officer noticed that bills amounting to Rs. 58,07,630/- did not contain the full name of the owner or his business address, and bill number. He further noticed that with respect to aggregate bills of Rs. 53,26,400/- no bills number or serial number were mentioned on the bills. He also noticed that there was no evidence mentioned on the bill about the transportation of material to the destination. He, therefore, concluded that the possibility of claiming expenses at higher side was not ru....
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....hown by the assessee is higher than the earlier years and the net profit for the year under consideration is comparable with that of earlier years. He further submitted that assessee being in the same line of business and no such disallowance have been made in earlier years in the order passed u/s. 143(3) and in support his contention he pointed to the assessment orders for assessment years 2007-08 and 2010-11 placed in the paper book. He further submitted that the assessee's accounts are audited and no discrepancies have been pointed out by the Auditors. Under such situation no disallowance is called for. With respect to the payments of labour charges he reiterated the submissions made before the Commissioner of Income Tax (Appeals). 7. T....