TaxTMI 
TaxTMI 
2019 (9) TMI 626
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.... appeal: "On the fact and in the circumstances of the case, the Commissioner of Income Tax (Appeal-II) has erred in; The Ld. CIT(A)-2, Bhopal has erred in allowing 90% of wages expenses claimed by the assessee related to two projects. 3. When the case was called, non-appeared on behalf of the assessee therefore, the case was heard with the assistance of Learned Departmental Representative (Ld.DR) and available records on file. 4. The Sole grievance of the revenue is against the finding of Ld. CIT(A) allowing 90% of wages expenses claimed by the assessee related to two projects. 5. Brief facts as culled out from the records are that the assessee is a Private Limited Company engaged in construction of building. Nil income was declared ....
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.... incomplete and most of the payment is made in cash for the purpose of claiming expenditure. Assessee has not maintained proper supporting. Ld. DR also contended that the assessee has not filed any details about the total turnover and profits earned since the income as per the return has been shown as loss of Rs. 76,26,149/- (as mentioned in the assessment order). 9. We have heard Ld. DR and perused the records placed before us.Only issue relates to disallowance of wages expenses incurred by the assessee on two projects at Girnar Hills & Girnar Valley at Rs. 83,58,440/- & Rs. 90,53,602/-. Ld. CIT(A) restricted the disallowance to 10% of the total wages expenses incurred for the two projects observing as follows: "I have carefully conside....
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....ayments were not produced. It is seen and acknowledged by the AO that the muster roll was produced before the AO. It is observed that the muster roll contains full detail in respect of payment made to workers. The heading of the muster roll is "Weekly wages payment sheet. It is maintained date wise, full name of labour is there, date wise attendance is not, number of days worked, rate of payment, total amount paid etc. is mentioned thereon. As acknowledgement of receipts of payment, the recipients have placed their signatures/thumb impressions on the muster rool. Thus, it is found that the appellant has maintained full record of payment made to daily wages workers showing the particulars of person appointed, attendance of worker, no of da....
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.... case, it is contended that the AO has erred in disallowing 100% wages payment in respect of both the projects. However, examination of the muster roll for the entire year shows that in some cases, either signature or thumb impression of the labour as token of receipt is not found on the muster roll. In view of this fact, I hold that some disallowance out of these wages is required. In the facts and circumstances of the case, I consider it reasonable to restrict the disallowance of 100% of wages payment to 10% of the wages payment made to the labour in respect of the two projects. The AO is therefore, directed to restrict the disallowance to Rs. 17,41,205/- i.e. 10% of Rs. 1,74,12,042/-. 10. The above finding of fact given by the Ld. CIT(A....