TaxTMI 
TaxTMI 
2014 (5) TMI 239
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....n 27.12.2010 for A.Y.2007-08 by CIT(A) confirming all the disallowance made by AO is wholly illegal, unlawful and against the principles of natural justice. 1.2 The ld.CIT(A) has grievously erred in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned disallowances. The observations made and conclusions reached by AO and confirmed by CIT(A) to the extent the same are contrary to the evidence on record are not admitted by the appellant." 4. These grounds are general in nature and need no adjudication. 5. The ground no.2.1 is as under: "2.1 The ld.CIT(A) has grievously erred in law and or on facts in upholding the following disallowances: (i) Disallowance of ....
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....as been made merely on the basis of suspicion by the AO. 7. The learned DR has opposed the submissions of the learned counsel for the assessee. He submitted that the insurance amount paid was not uniform, and there is no reason why the different amount of insurance was paid for the vehicles sold by the assessee. He submitted that the assessee failed to submit any cogent reason in support of its claim of trade discount given by him. He referred to the relevant portions of the assessment order and the order of the CIT(A) in support of the case of the Revenue. He submitted that in some cases, cheques of trade discount was given in some names, but the same was encashed by some other persons. Moreover, there were no fixed pattern of allowing ....
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....he balance amount of disallowance out of trade discount, we find that the assessee has filed copies of discount vouchers from pages no.236 to 442 of the compilation before us, which bear the signature of the payee also. However, a chart filed by the assesee at page no.589 of the compilation shows that it includes the payment made by cheque of Rs.16,87,327/- and also made in cash at Rs.17,24,944/-. We find that the assessee could not prove the genuineness of the entire cash payment of Rs.17,24,944/- claimed to have been paid as trade discount to the customers. The possibility of inflation in the figure of trade discount could not be ruled out. Some of the cheques were issued as "bearer cheque" to the payee of the trade discount. In one case,....
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.... 10. The next issue is regarding disallowance of Rs.10,51,740/- on account of RTO taxes. 11. The learned counsel for the assessee submitted that the tax was deposited on behalf of the customers to the Government Department of the RTO, and therefore, there is no justification for any disallowance. The learned DR submitted that there was no uniform policy of the assessee in the matter of payment of RTO taxes and the onus was on the assessee to prove the genuineness thereof. He relied on the order of the AO and the CIT(A). We have considered rival submissions. We find that the assessee has paid RTO taxes to the Government Department of Road Transport and there is no material brought on record to doubt the genuineness of the said payment.....
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....imbursement of expenses by the principal company. The learned DR submitted that there was no justification for payment of salary to the employees of International Tractors Ltd., and there was no proof of actual payment of the salary. He relied on the order of the AO and the CIT(A). 15. We have considered rival submissions. We find that the payment was to the employees of principal company by way of reimbursement made to the field staff appointed directly by the principal company. The CIT(A) has not disputed the basic facts, but confirmed disallowance by invoking the provision of section 40(a)(ia) of the Act, which is not applicable to the facts and circumstances of the case, and accordingly, the issue is decided in favour of the assesee,....