9911796707
TMI Blog2015 (11) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... view that a round sum disallowance of Rs. one lakh in order to cover up the deficiency, if any, in respect of claim relating to salary and wages expenditure may be made and the same, in our view, would meet the ends of justice. Accordingly, we set aside the order of the learned Commissioner of Income-tax (Appeals) on this issue and direct the Assessing Officer to restrict the disallowance out of salary and wages expenditures to Rs. one lakh. - Decided in favour of assessee in part Disallowance of value added tax payable amount made under section 43B - Held that:- The assessee had claimed input credit of ₹ 5,67,185, whereas the value added tax auditor determined that the input credit was available to the assessee only to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11(assessment year 2007-08). - - - Dated:- 18-3-2015 - B. R. BASKARAN (Accountant Member) and SANJAY GARG (Judicial Member) K. Gopal for the appellant. Love Kumar for the respondent. ORDER The order of the Bench was delivered by 1. B. R. Baskaran (Accountant Member).-The appeal filed by the assessee is directed against the order dated December 29, 2010 passed by the learned Commissioner of Income-tax (Appeals)-26, Mumbai and it relates to the assessment year 2007-08. 2. The assessee is aggrieved by the decision of the learned Commissioner of Income-tax (Appeals) in respect of following three issues : (a) disallowance made out of salary and wages ; (b) disallowance made under section 43B of the Income-tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertaking civil contract works and decoration works. It is a common knowledge of everybody that both kinds of work involve huge labour expenditure. The assessee has claimed labour expenses of ₹ 11.01 lakhs, out of which the sum of ₹ 9.14 lakhs have been paid by cash. The Assessing Officer has however, disallowed the entire expenditure incurred by way of cash on the reasoning that there are certain deficiencies in the vouchers produced by the assessee. In our view, it may not be justifiable to disallow the entire claim of expenditure for the deficiencies found in the maintenance of vouchers, particularly for the reasons that the assessee's work necessitates employment of sizable labour force. During the course of hearing, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 43B of the Act. The Assessing Officer noticed from the value added tax audit report that a sum of ₹ 1,92,087 was found payable by the assessee. However, the assessee had disallowed a sum of ₹ 93,398 only in the return of income. Hence, the Assessing Officer disallowed the balance amount of ₹ 98,689 by invoking the provisions of section 43B of the Act. The same was confirmed by the learned Commissioner of Income-tax (Appeals). 8. Before us, the learned authorised representative contended that the difference has arisen on account of reduction of eligible input credit by the auditor in the value added tax audit report. The learned authorised representative submitted that the assessee has claimed input credit of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that tax credit was given only in the month of July 2008, i.e., beyond the due date prescribed for filing the return of income for the year under consideration. 11. From the foregoing discussions, we notice that the assessee had claimed input credit of ₹ 5,67,185, whereas the value added tax auditor determined that the input credit was available to the assessee only to the extent of ₹ 3,68,505. Further, there was difference with regard to value added tax amount paid by the assessee. Accordingly, the Assessing Officer has determined the value added tax amount payable at the year end at ₹ 1,92,087. It is not the case of the assessee that he has not accepted the value added tax audit report. Having accepted the value a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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