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TMI Blog2015 (10) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... . Since the assessee has proved that it has produced proper bills/ vouchers and the Assessing Officer has confirmed the availability of relevant names and addresses of the labourers vide his letter dated 16.12.2012, hence it is not necessary for the CIT(A) to ask for a remand report. We find that due to discrepancies found in the accounts, the Assessing Officer has estimated the income at 12.5% of the gross bills minus recoveries and rejected the books of account. Taking a consistent view, as in the decision of Sainath Estates Pvt. Ltd. (2013 (9) TMI 528 - ITAT Hyderabad ) we direct the Assessing Officer to restrict the disallowance to 5% of the labour payments. - Decided partly in favour of revenue. - ITA No. 1644/Hyd/2012 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of account and estimated the income at 12.5% of the gross bill of ₹ 8,45,04,695 based on two grounds (a) payments made to labourers are not verifiable and (b) TDS not effected on transport payments. 5. Before the CIT(A), with regard to the payments made to the labourers, the assessee submitted that it is regularly making weekly payments of small amounts to various labourers in cash. The assessee submitted that it had obtained payment vouchers from 33 honest and reliable labourers through whom weekly payments to various labourers had been made. The assessee submitted that action of the Assessing Officer in rejecting the books of account by invoking the provisions of section 145 of the Act stating that the payments made to labou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be denied, the CIT(A) held that ends of justice are met if 1% of labourer expenses of ₹ 4,16,89,874 i.e., ₹ 4,16,900 is added to the returned income at ₹ 10,88,270 and the CIT(A) directed the AO accordingly. Aggrieved, the assessee is in appeal before us. 8. Before us, the learned AR submitted that the names and addresses of all these 33 members have been clearly mentioned on the back side of the payment vouchers. The no. of male workers and no. of female workers including the no. of days worked during the week has been clearly mentioned in each and every payment voucher. Further, these 33 members, in turn obtained either signatures or thumb impression of all the labourers to whom they have made payments acknowledgin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expenditure claimed in the profit loss account vide its letter dt. 29-11-2011 to the notice of the assessing officer, he accepted the submission of proper bills and vouchers in respect of the expenditure claimed in the profit loss account along with the books of account on 14-11-2011 vide his letter dt. 09-12-2011. Copies of the assessee's letter dt. 29-11-2011 and also a copy of the assessing officer's letter dt. 09-12-2011 are kept on record as document nos. 7 and 8. 11. The AR submitted that the assessing officer vide his letter dt. 09-12-2011, proposed to reject the books of account stating that the assessee produced self made vouchers, since the names and addresses of the persons to whom payments were made are not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the names and addresses of the labourers from whom payment vouchers were obtained are available on record. However, the Department has taken a plea that the CIT(A) has given relief in this case without giving an opportunity to the Assessing Officer or without calling for any remand report. 14. Before us the learned counsel for the assessee has produced necessary details at page Nos. 40 to 55 of the Paper Book and stated that he has produced all the details pertaining to labour payments and evidences before the Assessing Officer. 15. The learned counsel for the assessee also relied on the decision of the co-ordinate Bench in the case of Sainath Estates (P) Ltd. vs. DCIT (142 ITR 370) (Hyd) wherein the Tribunal held as under: 36. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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