Section 37 of Income Tax Act, 1961—The only issue raised by the assessee is that the learned CIT(A) erred in confirming the disallowance of Rs. 47,07,974.00 on account of labour expenses.

Held that— we hold that the genuineness of the payment of the wages to the temporary staff cannot be suspected as it was subject to professional tax and Provident fund. Once the genuineness of the expenses is established, then in our considered view the AO cannot occupy the armchair of the assessee and direct it to make the payment of wages at particular rate. As such it was the wisdom of the assessee for making the payment of the wages at the particular rate which cannot be questioned by the AO.

Therefore, in our considered view the principles laid down by this tribunal in the own case of the assessee are squarely applicable to the case on hand.[M/S. RADIANT HITECH ENGG. PVT. LTD. VERSUS ASST. COMMISSIONER OF INCOME TAX CIRCLE-4 BARODA][2019] 20 ITCD Online (22) [ ITAT AHMEDABAD]