Disallowance u/s 40A(3) for non-production of bills- ITAT restricts Addition at 10% of such Purchases

Velankanni Constructions Vs ACIT (ITAT Chennai) The assessee being resident firm is stated to be engaged in civil construction. The assessee could not produce bills or voucher for blue metal jelly purchase, brick purchase and sand purchase. The reasons adduced were that the assessee undertook work at remote places and was dependent on local supplies. The cost of two units of sand was stated to be costing Rs.1600/-, the cost of two unit of blue metal was stated to cost Rs.2400/- and one load of 5000 bricks was stated to cost Rs.15000/-. However, rejecting the same, Ld. AO invoked the provisions...