Disallowance of 10% expense justified in case of self made vouchers & non production of sub-contractors

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

Conclusion: Where the books of accounts maintained by contractors were not accepted by the Department, the estimation of profit made on the basis of history of Gross Profit rate and Net Profit rate of assessee in the previous years or comparable cases of contractors could be made. Once such profit rates were compared, the additions on account of non confirmation or non production of the sub contractors, etc. was totally irrelevant and could not be made.

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