2018 (8) TMI 1880

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..../- out of labour and contract staff expenses. 4. The Assessing Officer noted that assessee has claimed labour charges at Rs. 41,41,417/- which are paid to workers and labourers. The assessee was asked to furnish the details of work and labour employed for the project under taken alongwith sites. The assessee filed the details in respect of sub contractor / wages expenses for few sites for verifications. The Assessing Officer noted that these wages muster shows that all these vouchers are self generated and payments are made in cash. The vouchers also have discrepancies like non availability of names, address, signature and nature of work etc. The expenses were, therefore, not verifiable. The Assessing Officer accordingly made disallowance....

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.... the Ld. CIT (Appeals). It may be noted here that the Assessing Officer while completing the assessment made disallowance of expenses of Rs. 1,50,000/- out of labour expenses which have been deleted by us above. The Assessing Officer further made addition of Rs. 22,944/- under the head income from house property. No other addition has been made by the Assessing Officer. The Assessing officer accepted final results of the assessee because the GP and NP were better as compared to the earlier years. 7. The Ld. CIT (Appeals) at the appellate stage asked the assessee to file details of commission expenses. The assessee filed complete details of the commission expenses which are noted for the appellate order. The Ld. CIT (A) noted that the peru....

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....ent of Hon'ble Bombay High Court in case of Shapoor Ji Pallonji Mistry Vs. CIT 34 ITR 342 and judgment of full bench of Hon'ble Delhi High Court in the case of CIT Vs. Sardari Lal and Co. reported in 251 ITR 864. He has also submitted that similar issue have been considered and decided by ITAT Delhi Bench in the case Bikram Singh Vs. DCIT reported in 82 taxmann.com 230 in which above judgments have been considered and the Tribunal in para 11 held as under :- We have perused all the records and heard both the counsels, it is pertinent to know that Assessing Officer has not dealt the reply and the enclosures/ documents given on the date of assessment order i.e. 19/11/2011, the same was not testified before the CIT(A). The CIT(A) should have t....

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....58] 34 ITR 342 (Bom) (confirmed by the Apex Court in CIT v. Shapoorji Pallonji Mistry [1962] 44 ITR 891 (Hon'ble Supreme Court) wherein the Hon'ble Bombay High Court while dealing with the powers of the CIT(A) held that CIT (A) was not empower to enhance an income on an issue which was not the subject matter of the assessment. The ratio laid down in the judgment of full Bench of Delhi High Court in the case of Sardari Lal & Co. (supra) is also relevant in assessee's case that the CIT(A) cannot touch upon an issue which does not arise from the order of the assessment and was outside the scope of the order of the assessment. The order of the CIT (A) does not sustain. 9. The Ld. Counsel for the assessee further submitted that the assesse....