Appeal partly allowed, AO to verify sec 80IA deduction; expenses adhoc disallowance deleted.

The Tribunal partially allowed the appeal, directing the Assessing Officer to verify the deduction claim under section 80IA, which had been disallowed initially but allowed in subsequent years. Additionally, the Tribunal instructed the deletion of expenses disallowed on an adhoc basis due to lack of specific evidence, resulting in the appeal being partly allowed for statistical purposes.

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Issues:
1. Rejection of deduction claim under section 80IA
2. Disallowance of expenses on adhoc basis

Issue 1: Rejection of deduction claim under section 80IA:
The appeal was against the order of the Ld. CIT(A) pertaining to the assessment year 2012-13. The Assessing Officer (A.O.) disallowed the claim of deduction under section 80IA of the Income Tax Act, 1961, amounting to Rs. 30,60,276 derived from the eligible power generation business through a Wind Mill unit. The A.O. also made other disallowances, resulting in an assessed income higher than the declared income. The Ld. CIT(A) upheld the A.O.'s decision. The assessee contended that the claim for deduction was made during the assessment proceedings and had been allowed in subsequent years. The Tribunal found that the claim of deduction had been allowed in subsequent years and disagreed with the reasoning of the Ld. CIT(A) for rejecting the claim. The Tribunal referred to relevant case laws and directed the A.O. to verify the correctness of the claim, allowing the deduction if found appropriate. The ground of the assessee's appeal was allowed for statistical purposes.

Issue 2: Disallowance of expenses on adhoc basis:
The A.O. had disallowed expenses amounting to Rs. 1,50,000 on an adhoc basis due to improper bills and vouchers. The Ld. CIT(A) confirmed this disallowance stating that the bills and vouchers were not properly maintained. The Tribunal noted that the authorities had not pointed out specific expenses lacking proper evidence and directed the A.O. to delete this addition. As a result, the appeal filed by the assessee was partly allowed for statistical purposes.

In conclusion, the Tribunal allowed the appeal in part, directing the A.O. to verify the deduction claim under section 80IA and delete the disallowed expenses made on an adhoc basis due to lack of specific evidence.

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