Tribunal affirms disallowance of expenses for A.Y. 2013-2014

The Tribunal upheld the disallowance of the amount of stale cheques towards Other Creditors and the adhoc disallowance on Car Repair and Maintenance Expenses and Communication Expenses. The decision was based on the appellant's failure to provide new evidence or challenge the lower authorities' findings. The appeal was dismissed, affirming the rulings of the lower authorities for the A.Y. 2013-2014.

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Issues:
1. Disallowance of amount of stale cheques towards Other Creditors.
2. Adhoc disallowance on expenses like Car Repair and Maintenance Expenses and Communication Expenses.

Issue 1: Disallowance of amount of stale cheques towards Other Creditors:

The appeal was filed against the Order of the Ld. CIT(A) relating to the A.Y. 2013-2014. The A.O. disallowed Rs.27,252/- appearing under "Other Creditors" in the Balance Sheet, as the assessee was following the cash system of accounting and the amount was not cleared. The Ld. CIT(A) confirmed the disallowance, stating that as per cash system of accounting, the amount should be credited in the P & L A/c only when paid. The Tribunal upheld the decision, noting that the assessee failed to provide any new evidence or challenge the Ld. CIT(A)'s findings.

Issue 2: Adhoc disallowance on Car Repair and Maintenance Expenses and Communication Expenses:

The A.O. disallowed 10% of Car Repair and Maintenance Expenses and Communication Expenses claimed by the assessee due to the personal element in these expenses. The Ld. CIT(A) upheld the disallowance, mentioning that the appellant failed to provide evidence of separate vehicles and telephones for exclusive personal use. Despite multiple adjournments, the appellant did not submit the required details. The Tribunal supported the lower authorities' decisions, as the appellant did not present any new evidence or challenge the findings during the proceedings. Consequently, the grounds of appeal related to these expenses were dismissed.

In conclusion, the Tribunal dismissed the appeal of the Assessee, upholding the disallowances made by the lower authorities regarding the stale cheques towards Other Creditors and the adhoc disallowance on Car Repair and Maintenance Expenses and Communication Expenses. The decision was based on the failure of the appellant to provide supporting evidence or challenge the findings during the proceedings.

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