The Commissioner Of Income Tax-I v. Aerosys

KJ IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.4672 OF 2010 The Commissioner of Income Tax-IVs.Aerosys )..Appellant )..Respondent ---- Mr. Vimal Gupta for the appellant. Mr. S.N.Inamdar for the respondent. ---- CORAM : J. P .DEVADHAR & MRS.MRIDULA BHATKAR,JJ DATE : 1/3/2011. PC 1The basic question raised in this appeal is as under :- “whether the Tribunal was justified in deleting the additions made by the Assessing Officer towards the assessee’s claim of payment to labour contractor and salary and wages paid to the workers/supervisors ? 2The additions were made by the Assessing Officer in the light of the statement of a worker/supervisor recorded during the survey proceedings. The Tribunal in para-5 of its order has recorded a finding of fact that the statement given by the worker was retracted and during the cross-examination before the CIT(A) it was found that the statement was inconsistent with the facts on record. The Tribunal has further recorded a finding of fact that during the course of assessment proceedings, the Assessing Officer has recorded statements of the partner and another worker, both of whom confirmed that the number of persons actually working at the unit were more than 10. The Tribunal has recorded a finding of fact that the payment vouchers and books of accounts showing payments to these workers were produced before the Assessing Officer and payments to many of them were made through cheques. 3In these circumstances, the deletion of the additions made by the Assessing Officer cannot be faulted. In the result, we see no merits in the appeal and the same is dismissed. (MRS.MRIDULA BHATKAR,J) (J.P.DEVADHAR,J)