2013 (5) TMI 384

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....Basis without appreciating that company had filled all the details". 2. Briefly stated, in the course of the assessment proceedings, AO called for various details by issuance of the questionnaire and one such item was details of miscellaneous expenditure as per ledger a/c along with bills/vouchers. Since all other details were filed by assessee and no details were furnished with reference to the miscellaneous expenditure, AO disallowed 90% of the expenditure claimed at Rs.19,08,463. Therefore, an addition of Rs.17,17,617 was made to the total income. 3. It was contended before the CIT (A) that AO disallowed the said expenditure without asking for any such details and further submitted that the details can be submitted at the appellant....

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....Coordinate Bench in the case of Singh Construction & Co. vs. Asstt. Commissioner of Income Tax (1998) 60 TTJ (Pat.) TM 610 wherein additions made in an arbitrary and adhoc manner were not upheld. He also relied on the Coordinate Bench decision in the AY 2008-09 wherein 15% out of repairs and maintenance of Plant & Machinery on adhoc basis which were held to be capital expenditure was not upheld following the Coordinate Bench decision in the case of ACIT vs. Arthur Anderson & Co (Supra). 5. The learned DR however, referred to the orders of AO and submitted that assessee has not furnished the details and the CIT (A) gave relief without referring the matter to AO for examination. 6. We have considered the rival submissions and the disall....

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....he same. All supporting documents are available with the company" This indicates that assessee did not furnish the details as required by AO and so AO had no option than to disallow the amount at 90% of the total claim. The learned CIT (A) without referring the matter to AO, restricted the disallowance to 10% of the claim on adhoc basis. He also did not allow AO to examine the vouchers but gives a finding that the bills and vouchers have not been produced before AO, that is the reason why he is restricting the disallowance to 10%. Considering assessee's submissions that it is a public limited company and all expenses are properly vouched, we in the interest of justice, restore the issue to the file of AO to examine the nature of the misc....