TaxTMI 
TaxTMI 
2014 (7) TMI 387
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....sed of with this common order for the sake of convenience. 2. The only common issue involved in these cross appeals relates to the addition made on account of inflation in expenditure claimed by the assessee. Though the assessee, in the elaborate grounds raised in its appeal ITA No.1493/Hyd/2013, also contested the justification for the ex-parte order passed by the CIT(A), that aspect of the appeal was not agitated in the course of hearing on the appeal, and hence, the grounds in that behalf are rejected as not pressed. 3. Facts of the case in brief leading to the filing of these cross appeals are that the assessee, a company engaged in the business of export of software and technical services, filed its return of income for the assessmen....
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....A). 6. We heard both sides and perused the impugned orders of the Revenue authorities. We find that the impugned order of the CIT(A) is based on the corresponding order of the CIT(A) in assessee's own case for the assessment year 2005-06. The said order of the CIT(A) for assessment year 2005-06 was subject matter of appeal before this Tribunal in ITA No.318/Hyd/2013 of the assessee and No.398/Hyd/2013 of the Revenue. The Tribunal dealing with the corresponding addition on account of inflated expenditure, part of which has been sustained by the CIT(A), vide its consolidated order dated 19.2.2014, in the cross-appeals for the assessment years 2005-056 and 2006-07, has held as follows- "8. We have considered the issue and examined the detail....
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....s to deny the expenditure claimed by the assessee. There is no basis for A.O. disallowance of the so called inflated expenditure and learned CIT(A) also did not apply his mind in restricting the amount on an adhoc basis to Rs. 1 crore and Rs. 1.10 crores without any basis. At least, he should have examined the contentions of the assessee and proved that they are not correct. Without doing anything on record, this sort of disallowance of expenditure claimed by the assessee cannot be accepted or justified. In view of this, we have no hesitation in cancelling the so-called disallowance of expenditure resorted by the Assessing Officer. A.O. is directed to allow expenditure as claimed. Since its factual issue and most of principles relied on by ....