Suspicion Cannot Replace Proof in Labour Charges: ITAT Deleted Ad-Hoc Disallowance

Hitesh Ugamraj Mehta Vs ACIT (ITAT Mumbai) Ad-Hoc 10% Disallowance Deleted: ITAT Rules Suspicion Cannot Replace Proof in Labour Charges  The appeal before the Tribunal concerned disallowance of labour charges in a jewellery manufacturing and trading business for Assessment Year 2023–24. The assessee was engaged in manufacturing and trading of gold jewellery and had declared total income of ₹23,13,320. During scrutiny, the Assessing Officer (AO) observed that the gross profit was low and examined various expenses, particularly labour charges amounting to ₹4,92,34,244. Out of this, paymen...