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TMI Blog2019 (9) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee being a building construction project has declared huge loss. No details have been filed for the tax deducted at source if any on the labour contract charges. Site wise details were also not available on record. Allegedly, most of the payments have been made in cash. Submissions given by the assessee before the CIT(A) is general in nature. Labour licence stood expired on 31.03.2013. Though 100% disallowance by AO was not justified but in the given facts and circumstances of the case, disallowance of 20% of the total impugned wages will meet the end to justice for both the parties. Appeal of the Assessee is partly allowed. - ITA No.305/Ind/2018 - - - Dated:- 26-7-2019 - Shri Kul Bharat, Judicial Member And Shri Manis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s selected for scrutiny assessment as per CASS, followed by serving of notices u/s 143(2) 142(1) of the Act. While examining the submissions filed by the assessee Learned Assessing Officer (in short Ld. AO) observed that in Schedule-16 of Profit and Loss account various expenses were claimed towards Labour charges, wages expenses and salary. On the perusal of muster roll. Ld. AO noticed that they were incomplete on various aspects as names of the workers, their signature were missing on some of the paper. Most of the payments were made by cash. There was no contract agreement for the labour work. There was no licence for labour contractor with the assessee. Ld. AO accordingly disallowed various expenditure of ₹ 1,74 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing as follows: I have carefully considered the facts of the case. The appellant is a builder and during the period, it has undertaken Housing Project under the name of Girnar Valley Girnar Hills at Bhopal. During the year, the appellant has employed daily wages workers for executing all types of civil work under taken at these two projects. The AO has disallowed these expenses incurred on both project on the ground that the appellant has not submitted labour licence and proper voucher were not kept and produced only Muster Role for payment of wages. The AO has only considered one day s Muster Role i.e. of date 26.12.2013 as base for making disallowance of 100% wages for the entire years. The must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is found that the appellant has maintained full record of payment made to daily wages workers showing the particulars of person appointed, attendance of worker, no of days attended and payment made to him and weekly payment made to each worker and total payment made. The entries in the books of accounts are passed on the basis of the muster roll only. It is therefore, to be concluded that the said muster roll is itself a voucher for making accounting entries in books of accounts as it contains full detail in respect of payment made to workers and receipt of such payment also. 6.3 The muster roll dated 26.12.2013 was examined on the basis of which the disallowance has been made by the AO of 100% of wages paid for the entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment made to the labour in respect of the two projects. The AO is therefore, directed to restrict the disallowance to ₹ 17,41,205/- i.e. 10% of ₹ 1,74,12,042/-. 10. The above finding of fact given by the Ld. CIT(A) has been challenged by the Ld. DR. There is no representation from the side of the assessee to bring on the facts and relevant financial statement on record. However on perusal of the finding of the Ld. CIT(A) we find that the necessary details have been examined including the muster roll. Ld. CIT(A) seems to be satisfied with the details mentioned therein however Ld. CIT(A) has also referred to minor discrepancy in the records. Mainly various vouchers of labour payments are unsigned. It is also no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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