Disallowance of 20% on expenditure payments was justified based on lack of proof and documentation for sub-contractor payments

DCIT Vs Sanjay Gulabrai Kundalia Jamnagar Khambhaliya Highway (ITAT Rajkot) Conclusion: AO was wrong in disallowing the entire direct expenditure claimed towards sub-contractors for stevedoring and transport services and at the same time, assessee had not proved beyond doubt that the expenditure claimed was fully genuine. Considering all these inconsistencies, CIT(A) righlyl disallowed 20% of the expenditure claimed. Held: Assessee an individual, was engaged in Cargo handling activities and sub-contracted most of the work as he only possessed one excavator and lacked sufficient manpower and tr...