2014 (2) TMI 553

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....er D.Manmohan, Vice President: This appeal by the Revenue is directed against the order of the Commissioner of Income-tax(Appeals) V, Hyderabad, dated 28.2.2013 for the assessment year 2005-06. 2. The only effective ground urged by the Revenue reads as under- "1 .... 2. The learned CIT(A) erred in deleting the addition made of Rs.25 lakhs disregarding the facts brought out in the Reman....

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....by vouchers and it is reasonable having regard to the turnover etc. It was also submitted that 86.54% was paid to Government of Andhra Pradesh, 1.17% was paid to banks through working capital interest and bank charges, 6.45% was paid as royalty to brand holder, 2.98% is towards freight and 2.11% was spent towards service charges. The assessee furnished various bills and vouchers in support of his ....

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.... to tax in the scrutiny proceedings. In support thereof, the assessee produced copies of the income-tax returns and assessments thereon. Having regard to the circumstances of the case, the learned CIT(A) arrived at the conclusion that it is not a fit case for making any addition, since the expenditure incurred by the assessee and claimed as deduction under S.37 of the Act is reasonable. Brief reas....

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....0/- made in the assessment. 7. Aggrieved Revenue is in appeal before us. 8. The Learned Departmental Representative placed before us a copy of the remand report to support the stand of the Assessing Officer that the expenditure claimed as deduction is excessive. 9. On the other hand, the learned counsel appearing on behalf of the assessee submitted that the addition made on ad-hoc basis i....