2010 (9) TMI 941

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....e disallowance of Rs.11,01,535/- u/s.40A(2)(b) of the Act, on account of excessive service charges paid to a group concern, namely M/s. Jay Infra Trade Pvt.Ltd. 2. The Ld. CIT(A) erred in law and on the facts of the case in directing the Assessing Officer to delete the disallowance of Rs.3,59,690/-, being 1/7th of miscellaneous expenses, when the assessee had expressed inability to produce the bills and vouchers for verification during the assessment proceedings. 2. Both these grounds have already been decided by the ITAT Ahmedabad Bench "B" vide an order passed in ITA Nos.1607 and 4063/Ahd/2007 for Assessment Years 2003-04 & 2004-05 order dated 17/09/2010respectively and, therefore, the directions embedded therein shall also apply mu....

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....herefore, this ground of the Revenue is hereby treated as allowed for statistical purposes; for ready reference reproduced below:- "10.1. On one hand, the Revenue has vehemently argued that the first appellate authority had granted the relief without acknowledging the fact that the assessee has failed to substantiate the said claim before the Assessing Officer though an opportunity was granted by the Assessing Officer, however on the other hand, the assessee has informed that those vouchers or bills were not traceable at that time, therefore, due to the said reason could not be produced. The Learned Departmental Representative has vehemently argued that the Assessing Officer had adopted a very reasonable ratio of disallowance which could....