Cash Labour Payments Cannot Be Disallowed on Guesswork: ITAT Pune

Madhur Balasaheb Patil Vs ITO (ITAT Pune) Ad-hoc Disallowance of Cash Labour Charges Quashed: Pune ITAT Restores Appeals to CIT(A) The Pune Bench “A” of the ITAT, in Madhur Balasaheb Patil vs ITO (ITA Nos. 1009 & 1010/PUN/2025, AYs 2013-14 & 2014-15), set aside the ex-parte dismissal of appeals by the CIT(A)/NFAC and restored the matters for fresh adjudication on merits. The Assessee, engaged in manpower supply through a proprietary concern, had received contract payments from Dr. D.Y. Patil group institutions, which were withdrawn in cash and claimed as labour charges. The AO reop...