TaxTMI 
TaxTMI 
2007 (12) TMI 256
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....im in the return of income and thereby erred in dismissing the appeal of the assessee. 2. In the facts and circumstances of the case, and without prejudice to the generality of the forgoing ground of appeal No. 1 the learned CIT(A) has erred in law and in facts in maintaining the disallowance of Rs, 70,000 made by the learned AO out of generator running expenses. 3. In the facts and circumstances of the case, and without prejudice to the generality of the forgoing ground of appeal No. 1, the learned CIT(A) has erred in law and in facts in maintaining the disallowance of Rs. 1,77,172 made by the learned AO out of travelling expenses. 4. In the facts and circumstances of the case, and without prejudice to the generality of the forgoing gro....
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....e been increased. Keeping in view, these facts and these expenses were not fully vouched or partly vouched or supported by internal vouchers. The AO made a lump sum disallowance of Rs. 70,000 to cover up the element of unverifiable nature. The learned CIT(A) also confirmed this addition. 4. I have heard rival submissions and have perused the available materials on record, carefully. 5. It has been submitted by learned Authorised Representative Shri N.R. Mertia that it had processed 37.71 lakh kgs. of seeds as compared to 36.39 lakh kgs. seeds in the preceding asst. yr. 2001-02. This fact is also supported by the documents placed at page Nos. 8 and 10 of assessee's PB. The learned CIT(A) has given the reasoning that the turnover in this ye....
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.... Therefore, legally it is not possible to sustain this addition as the two years are not comparable and the reasoning of the assessee are plausible. Therefore, this addition is hereby ordered to be deleted. As a result, this ground of appeal is allowed. 6. The facts of ground No. (3) are that the assessee has claimed travelling expenses of Rs. 8.85 lakhs as against Rs. 4.74 lakhs in the immediately preceding assessment year. The AO has disallowed 1/5th of such expenses amounting to Rs. 1,77,172 on account of personal user of these expenses. In the first appeal the learned CIT(A) has sustained this addition on the basis of the facts of the immediately preceding assessment year. 7. I have heard the rival submissions and have perused the evi....
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..... It has been held therein that when a disallowance is made without pointing out an item of disallowable nature it could not be sustained. The facts of this ground are exactly similar to the case of Ganesh Foundry relied by learned Authorised Representative. Therefore, by respectfully following the above decision, I delete the entire addition made in this account and allow ground No. (3) of the appeal of the assessee. 9. The facts of ground No. (4) are that the telephone expenses of Rs. 6,18,706 and mobile phone expenses of Rs. 2,21,734 were claimed by the assessee during this year. On account of personal element involved the AO has disallowed @ 20 per cent was added in the total income of the assessee. This addition was confirmed by the l....