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of <h1>Appeal partly allowed for statistical purposes. Tribunal directs matter back for verification. Ad hoc disallowance confirmed.</h1> The appeal was partly allowed for statistical purposes. The Tribunal directed the matter back to the Assessing Officer for verification regarding the ... - Issues involved:The judgment involves the correctness of the Commissioner of Income Tax(Appeals)'s order u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 for the assessment year 2004-05.Ground Nos. 1, 4 & 5:These grounds are general and are dismissed without specific adjudication.Ground Nos. 2 & 3:The assessee contested the addition of amounts on account of difference between TDS deducted and credited in the profit and loss account, and estimation of expenses. The Assessing Officer added back amounts due to discrepancies in service charges and incomplete details of expenses incurred. The assessee explained that the difference in figures was due to the reimbursement of expenses, and a fire incident had hindered the preparation of detailed expense breakdown. The Tribunal acknowledged the possibility of TDS deduction from reimbursement payments and directed the matter back to the Assessing Officer for verification, while confirming the ad hoc disallowance of 2% on expenses.Detailed Analysis:The assessee, engaged in clearing and forwarding agency business, received service charges for services rendered. During reassessment, it was noted that the service charges in the profit and loss account differed from those in the TDS certificates. The Assessing Officer made additions based on these discrepancies, considering the difference as undisclosed service charges and making an ad hoc disallowance due to incomplete expense details. The Tribunal emphasized the need for the assessee to demonstrate the reimbursement component separately in bills to justify the difference. While agreeing with the assessee's position on the TDS deduction, the Tribunal upheld the ad hoc disallowance due to lack of complete expense details. The matter was remitted back to the Assessing Officer for factual verification.Conclusion:The appeal was partly allowed for statistical purposes, with the Tribunal directing the matter back to the Assessing Officer for verification while confirming the ad hoc disallowance on expenses.
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