TaxTMI 
TaxTMI 
2013 (6) TMI 475
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....stified in making addition of Rs.58,01,218/- by disallowing direct expenses debited to P&L A/c. 4. The CIT(A) was wrong in enhancing the income of the assessee from Rs.2,00,000/- to Rs.60,01,218/-. 5. The CIT(A) was wrong in disallowing the entire direct expenses of Rs.60,01,218/- as the disallowance is without any basis. 6. That the CIT(A) exceeded in his powers in enhancing the disallowance of direct expenses to Rs.60,01,218/-. 7. That the CIT(A) was not justified in confirming the application of commission rate of 2% on the total deposits in the bank account. 8. That the CIT(A) was wrong in sustaining addition of commission of Rs.5,33,490/- made by the Assessing Officer by applying rate of 2% on the total deposits in the bank accoun....
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.... the amount of Rs.2,6,74,500/- being aggregate of credit balances in Federal Bank & Vijaya Bank. 3. Dissatisfied with the order, the assessee filed appeal before Ld CIT(A) and submitted that amount of income estimated by the Assessing Officer was without any basis and was arbitrary in view of the fact that assessee company was maintaining regular books of accounts and these were duly audited by the firm of C.As. and report u/s 4AB had already been filed along with the return of income. It was also submitted that estimate made by the Assessing Officer was not supported by any material or record as the Assessing Officer has failed to bring any evidence or material on record to support his contentions. It was also argued that income from comm....
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....essing Officer. The Assessing Officer asked to produce books of accounts for the verification of expenses repeatedly. However, the books of accounts were not produced before him. 2. Since neither books of accounts nor the bills and vouchers for the expenses were produced before the Assessing Officer for scrutiny, the Assessing Officer ought to have disallowed entire expenses of Rs.60,01,218/- being non verifiable for want of reasons stated earlier and also in the absence of any details relating to the same. However, the Assessing Officer has disallowed an amount of Rs.2,00,000/- only. Thus, the balance amount of Rs.58,01,218/- remains to be disallowed. 3. In view of the above facts, in exercise of powers vested in me by virtue of provisio....
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....ther before the Assessing Officer or before me, I hold that deduction of expenses of Rs.60,01,218/- cannot be allowed. Hence, the addition on account of disallowance of expenses is enhanced from Rs.2,00,000/- to Rs.60,01,218/-. The Assessing Officer is directed to issue revised notice of demand, alter, verification of tax calculation and applicable interest as per law. 4. Dissatisfied by the order, the assessee is in appeal before us. 5. At the outset, the Ld AR argued that notice dated 17.9.2010 for enhancement of income was not received by the assessee and therefore the Ld CIT(A) passed the order of enhancement without affording an opportunity to the assessee and an affidavit signed and sworn by Director of the company was placed on rec....