10% disallowance of expenditure towards sub-contract for want of proper bills was justified

CIT Vs SPL Infrastructure Pvt. Ltd. (Madras High Court)

Conclusion: Since assessee-contractor carried out work for laying down road in a thermal power plant, therefore, there was no question of not incurring of expenditure by assessee to carry on road work contracts but the disallowance of whole expenditure towards sub contract work by AO for want of proper bills was not justified instead  disallowance of 10% of expenses made by appellate authorities was justified.

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