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TMI Blog2013 (12) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... if the expenditure is shown to have been incurred or proved on account of payment for casual labour etc - The expenditure is not proved to have been incurred and therefore, it is disallowed - Such position without proof of expenditure being established, the benefit of section 37 cannot be granted - Decided against assessee. - ITA No. 79/2013 - - - Dated:- 17-12-2013 - Rajendra Menon And A. K. Sharma,JJ. For the Appellant : Shri A. P. Shrivastava, Advocate, with Shri Sapan Usrethe For the Respondent : Shri Sanjay Lal, on advance notice. ORDER They are heard on the question of admission. This appeal under section 260-A of the Income Tax Act has been filed by the appellant, challenging the orders passed by the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax (Appeal) found that the addition should have been made on the higher side and therefore, issued a show cause notice to the appellant asking them to show cause as to why this expenditure of Rs.3,50,000/- be not enhanced to Rs,50,84,778/-. After considering various aspect of the matter an addition of Rs.38,84,778/- was made on this count. On the appeal being filed before the Income Tax Appellate Tribunal, the Appellate Tribunal found that the enhancement was made to the tune of Rs.38,84,778/- on presumption and the Tribunal by the impugned order dated 11-02-2013 reduced the same by 50% and restricted the addition to Rs.19,24,358/-. Challenging this addition of Rs.19,24,358/- this appeal has been filed and the only ground canv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and vouchers are audited under section 44 AB of the Companies Act but no audit account showing expenditure incurred for engaging casual labours or labours is produced. That apart there is nothing to show payment of employees provident fund or the employees state Insurance Contribution with regard to these employees, it is based on these consideration that the amount has been added. The concurrent findings recorded by the authorities thus show that the proper books of accounts with regard to expenditure on this count was never produced or established and huge amount of Rs.50,84,778/- was sought having been incurred with regard to labour payment. As this amount was not properly explained by documentary supporting evidence, the action has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e finding recorded by the Appellate Tribunal in para-3 goes to show that with regard to this item, as is contained at serial no.5 of table no.2 of the order passed by the Assessing Authority, no proper books of account and vouchers etc. has been produced and taking note of all these factors, it is held that the expenditure is not proved to have been incurred and therefore, it is disallowed. If that be the position without proof of expenditure being established, the benefit of section 37 cannot be granted. Taking note of all these circumstances, we find no ground to interfere into the matter as no substantial question of law as alleged arise for consideration. Accordingly, the appeal is dismissed at this stage itself. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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