Case Law Details
Urban Infraprojects Pvt. Ltd. Vs ACIT (ITAT Kolkata)
In the present case, the assessee is is in the business of civil construction. The AO has disallowed ad-hoc 10% of operating and other expenses because the portions of the bills of self made debit vouchers are not verifiable.
ITAT states that, anyhow disallowing 10% of the expenditure on the ground that profit leakage has to be plugged cannot be supported. Keeping in view the facts and circumstances of the case, some disallowance of a random amount of 5 lakhs, in our view, would meet the end of justice. In the result, the balance disallowance is deleted and the appeal of the assessee is allowed in part.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals)-2, Kolkata, [hereinafter the “CIT(A)”], passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dated 23.01.2019 for the Assessment Year 2015-16.
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