Disallowance of labour expenses without evidences on ad hoc basis not maintainable

DCIT Vs Shalaka Infra Tech (India) Pvt Ltd (ITAT Pune) Whether the CIT(A) is justified in deleting the disallowance of Rs.1,68,87,175/- as against Rs.1,88,63,786/- made by the AO on account of labour expenses in the facts and circumstances of the case. Heard both the parties and perused the material available on record. We note that vide Para No. 5 of the assessment order that the assessee had debited an amount of Rs.46,37,67,463/- as labour charges under the head “Other Expenses” in Note No. 20 of the profit and loss account. The AO requested the assessee to file the details of parties ag...