2016 (1) TMI 1495

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....ent year 2008-09. 2. Solitary issue raised by Revenue in this appeal is that Ld. CIT(A) erred in allowing the relief of Rs,65,77,786/- which was disallowed by the AO on account of non-production of supporting evidence and necessary details in relation to various expenses. 3. The facts of the case are that assessee is an individual and engaged in business of civil contractor. During the year assessee has claimed the following expenses in his profit and loss account. Sl. No. Head of expenses Amount (Rs) 1 Cost of materials 1,34,60,607/- 2 Labour expenses 18,20,447/- 3 Salary, wages & bonus 12,20,447/- 4 Power & fuel 11,02,925/- 5 Staff welfare 3,91,096/- 6 Repair & maintenance ....

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....ce. For, the AO has to be guided by the rules of justice, equity and good concise. But, in the present case, the AO has found no defects in the audited accounts of the appellant. The AO has failed to bring any material or evidence on record to justify the disallowances made by him. The AO has also failed to consider the past records of the appellant. For, there is no finding of the AO that the claim of expenses is excessive or unreasonable with reference to the preceding years. The disallowances made by the AO are arbitrary and without any basis as they are not supported by any material or evidence on record. In view of the above, and the ratio laid down by the Hon'ble Supreme Court and the jurisdictional High Court, I am of the conside....

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....at in the relevant year under consideration the cost for the material expenses have come down in relation to the gross receipt of the assessee. Regarding the labour charges the ld. drew our attention to the pages of 37 to 64 of the paper book wherein the details of the labourers have been furnished. Regarding the salary & wages the ld. AR drew our attention on page 65 of the paper book where comparison chart of such expenses with earlier years have been furnished. Similarly the assessee submitted the details of the power & fuel expenses which are placed on pages 66 to 75 of the paper book. Similarly the details of the expenses towards the repair & maintenance AND tour & travels are furnished on pages 76 to 86 and 87 to 113 respectively. The....