SC Upholds Deletion of Ad Hoc Expense Additions as Books Were Not Rejected

PCIT Vs R. G. Buildwell Engineers Ltd. (Supreme Court of India) Revenue challenged the findings of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT), which had deleted disallowances and consequential additions relating to two categories of expenses for Assessment Year 2010-11: (i) expenses on bricks, machinery repair, cartage, etc. amounting to approximately Rs. 1.1 crore, and (ii) labour expenses amounting to approximately Rs. 2.3 crore. The Assessing Officer (AO) held that insufficient evidence had been produced in support of the expenses on bricks, machin...