9911796707
TMI Blog2012 (8) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee is engaged in the business of executing Civil contracts. During the course of assessment proceedings the AO noted that the Auditors in Form No. 3CD have mentioned that expenses on account of labour charges, excavation charges, blasting charges, jungle cutting, centring charges etc. have been made on self supported vouchers. The details of such expenses as noted by the AO in the assessment order are as under : Labour Charges : ₹ 37,09,378/- Excavation : ₹ 18,29,582/- Blasting charges : ₹ 17,17,490/- Total ₹ 72,56,530/- He therefore asked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned that the expenses are not having external supporting evidences other than self made vouchers. 4. In appeal the learned CIT(A) restricted such disallowance to 10% of the expenses and thus sustained an amount of ₹ 7,25,645/-. Aggrieved with such order of the CIT(A) the assessee is in appeal before us. 5. The learned counsel for the assessee submitted that the assessee is engaged in construction of earthern dams in the remote parts of the State of Maharastra. He submitted that it is practically not possible to get printed vouchers from the labourers engaged in the site. Since the AO has not rejected the books of accounts, therefore, no disallowance is called for. Referring to the decision of the Ahmedabad Bench of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction activities complete vouchers for labour payments cannot be maintained. Further the book results have also not been rejected by the AO. 8. We find the Ahmedabad Bench of the Tribunal in the case of Pragati Fashions (Supra) has held that where the vouchers in respect of expenses on conveyance, auto fair, tea-coffee, cold drink, water expenses etc. contained the details as to the persons in receipt of amount and purposes for which the expenses are incurred, disallowance out of such expenses cannot be made on the ground that such vouchers were self generated since no pucca bill for such expenses is possible. Similarly the Mumbai Bench of the Tribunal in the case of Ayushakti Ayurved Pvt. Ltd. (Supra) has held that when the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
