2017 (3) TMI 1802

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssee is registered as a Labour Contract Co-operative Ltd., consisting of skilled and unskilled labour and executing contract works in various Government departments. For the impugned assessment year, assessee admitted income of Rs. 12,16,350/- claimed the entire amount of exemption u/s. 80P(2)(a)(vi). In the assessment u/s. 143(3), Assessing Officer (AO) disallowed the deduction on the ground that assessee was a civil contractor for GHMC and is not a labour contractor. Further, he estimated the profit at 8% of gross contract receipts and determined the total income at Rs. 14,28,370/-. 3. Before the Ld.CIT(A), assessee submitted that it is being filing returns in the status of society and deduction u/s. 80P has been allowed in earlier yea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as found which read as under: "The assessee's AR appeared for hearing and case discussed. During the scrutiny proceedings the AR has been informed of various unverifiable nature of vouchers in material charges amounting to Rs. 4,40,000 and Rs. 2,00,000 towards hire charges. For this the AR stated that since the society is meant for member and their relatives and kinsman, all the payments are made to them only. He further stated that the society is under continuous statutory audit. When pressed further, the AR stated that he has no objection for disallowances (out of ambit of 80P) and stated that they will not contest in appeals." In any case from the perusal of P&L a/c, the quantum of expenses debited to P&L a/c with r....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the rival contentions and perused the record. On similar facts as that of assessee, in the case of CIT Vs. M/s. Uralungal Labour Contract in ITA No. 1722 of 2009 dt. 29- 10-2009 (supra), it was held by Hon'ble Kerala High Court as under: "4. So far as the merits of the case is considered, even though no specific question is raised in the appeals filed, Senior Standing Counsel for the appellant submitted that this is an omission and department wants to amend the appeal to cover such a question also. We do not think any written amendment is required for this court to permit the counsel to raise a question of law, if it is substantial question of law warranting decision by this court under Section 260A of the Income Tax Act. We, ther....