SHRI RAKESHBHAI J. JADON,PANCHMAHAL vs. THE ACIT, PANCHMAHAL CIRCLE, GODHRA

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ITA 137/AHD/2015Status: DisposedITAT Ahmedabad15 January 2018AY 2010-112 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that once the assessee, through their AR, agreed to the disallowance of 10% of labour expenses, there was no merit in the subsequent grievance. Therefore, the appeal was dismissed.

What were the facts?

The Assessing Officer (AO) proposed a 10% disallowance on labour expenses of Rs. 1,64,61,640/- incurred mostly in cash. The assessee's authorized representative (AR) agreed to this proposed addition during assessment proceedings.

What were the issues?

Whether the assessee can challenge a disallowance after agreeing to it during assessment proceedings.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH

Before: SHRI N.K. BILLAIYA & SHRI MAHAVIR PRASAD

For Appellant: Shri Sunil Talati, AR

PER N.K. BILLAIYA, ACCOUNTANT MEMBER:

1.

This appeal by the Assessee is preferred against the order of the Ld. CIT(A)- IV, Baroda dated 30.10.2014 pertaining to A.Y. 2010-11.

ITA No. 137/Ahd/2015 2 . A.Y. 2010-11 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the addition made of 10% of labour charges and wages charges amounting to Rs. 16,46,164/-.

3.

During the course of the scrutiny assessment proceedings, the A.O. noticed that the assessee has debited Rs. 1,64,61,640/- as Labour Expenses. Since the expenses were mainly incurred in cash, the A.O. proposed to make a disallowance of 10% of the expenses. Vide order sheet entry dated 24.01.2013, the A.R. of the assessee agreed to the proposed addition. On such concession, the A.O. made addition of Rs. 16,46,164/-.

4.

Assessee carried the matter before the ld. CIT(A) but without any success.

5.

The ld. CIT(A) dismissed the appeal of the assessee being filed beyond the period of limitation. Before us, the ld. counsel could not bring any evidence to controvert the findings of the A.O. who has specifically mentioned that the A.R. of the assessee agreed for the disallowance of 10% of the Labour Expenses.

6.

In our considered opinion, once the assessee himself as agreed for the disallowance, we do not find any merit in his grievance. Appeal is accordingly dismissed. Order pronounced in Open Court on 15 - 01- 2018

Sd/- Sd/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER Ahmedabad: Dated 15/01/2018

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