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TMI Blog2014 (3) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... eady placed on record that it was only a typographical mistake and has not resulted in the excess claim and in the wisdom of CIT(A) it was not required to be investigated by the AO – there is no illegality on the part of the CIT(A) - department has not pointed out as to why the reconciliation furnished by the assessee should not be accepted and the claim of purchases debited to the P&L Account is not as per the actual purchases and correct figure – thus, there is no reason to interefere with the order of CIT(A). Deletion of labour charges – Held that:- The AO has not examined the issue from the angle that the labour charges claimed by the assessee are bogus but the adhoc disallowance was made on the ground that some of the vouchers are s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made on account of labour charges of Rs. 1,00,000/- by ignoring the fact that the assessee had not filed any details earlier before the AO; but had filed before him. Thus, the Ld. CIT(A) admitted additional evidence u/s 46A without giving opportunity to AO. 2. The AO during the course of assessment proceedings noted that the assessee has debited an amount of Rs. 9,00,03,090/- to the P L account on account of purchases. The AO issued notice u./s 142(1) to the assessee and asked to furnish the details of purchases. In reply the assessee filed the details of purchases. The AO issued notice u/s 133(6) of the Income Tax Act, to M/s H R Johnson (India) in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Ld. AR of the assessee has submitted that the assessee has not produced any additional evidence but pointed out the typographical mistake occurred in the details filed by the assessee. The CIT(A) has examined the evidence already before the AO and found that because of that error the assessee has not claimed any excess purchases or inflated purchases but error was only in respect of one party and by taking the correct figure the total purchase debited to the P L account remains the same. Thus there is no violation of Rule 46A, while considering the explanation furnished by the assessee regarding the typographical error in writing the figure of purchase, which was otherwise taken as correct figure while debiting to the P L Account. He ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsistence to the actual details recorded in the books of accounts would not amount to furnishing any additional evidence. The CIT(A) has examined the details along with other relevant evidence/record from the books of accounts and found that this typographical mistake in writing the amount of purchases in the details furnished by the assessee before the AO has not affected the total amount of purchases debited to the P L Account. From the perusal of the record we find that this typographical mistake is inconsequential because it has not resulted into excess or inflated claim of purchase. We further note that the assessee has produced the reconciliation before the CIT(A) showing the discrepancy in the figure of only one party in question an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abour charges. 9. On appeal, CIT(A) noted the fact that the assessee is engaged in the civil construction work which involves labourers on daily payment basis and the assessee has been maintaining vouchers supporting the payments to the daily wagers. Accordingly the adhoc disallowance made by the AO was deleted by CIT(A). 10. We have heard the Ld. DR as well as Ld. AR and considered the relevant material on record, the AO has made adhoc disallowance on the gorund that some of the vouchers with regard to the payment of labour charges are self made and accordingly addition of Rs. 1,00,000 was made, out of the total labour charges of Rs. 7.33 crores. The AO has not examined the issue from the angle that the labour charges claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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