2015 (10) TMI 464

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....stified by restricting the disallowance from 25% to 10% under the head 'Renovation/ Up gradation of property' just on conjectures and surmises even without bringing any adverse material/ evidence." Revenue's appeal (ITA no. 4099/Del/2010) "On the facts and circumstances of the case the Ld. CIT(A) has erred in restricting the addition made by the AO from 25% to 10% of expenses of Rs. 5,68,69,893/- for renovation of properties." 2. Brief facts of the case are that the assessee had filed his return of income declaring income of Rs. 10,25,710/-. The assessing officer noticed that during the year assessee had shown sale and purchase of buildings and claimed expenses of Rs. 5,68,69,893/- for renovation of properties which were either sol....

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....ate-wise etc. He also filed copies of ledger accounts of all the properties showing full details. Some copies of sample major bills had also been produced for verification before assessing officer. It was, therefore, submitted that the observations to the contrary were not correct. 2.2. As regards the defects pointed out by the assessing officer in the bills, the assessee submitted as under: "3.2.1. As regards defects pointed out by the AD. in the bills, the submission of the appellant is as under:- "(i). The assessee is doing the business under the name and style of 'ARORA DEVELOPERS'. The assessee is dealing with uneducated, unorganized and labour class and therefore these people write mostly the business name of the asse....

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....n that some of the bills so produced are not complete in all respects. In some of the bills whereas appellant's name is written or the name of proprietary concern namely 'Arora Developers' is written, in some bills it is simply written "Aroraji". At the same time in some bills it is written "Arora Cons" whereas in some bills it is written as "Arora Dev". In some of the bills it is written as "Arora". When the reasons for the same were asked for from the Ld. A.R., it was submitted by him that the bills are coming mostly from unorganized sector and they are not conversant with the exact name of the concern in whose favour the bill has to be raised. It was brought to my notice by the Ld. A.R. that full names of the appellant's ....

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....rinted without name of the parties which is written by hand. For example the bills from 'Brij Pal Singh', 'Raj Kamal Timber', 'Pawan Electric Company' etc. When attention of the Ld. AR. was drawn on these facts during the course of appellate hearing, except saying that the bills are coming from unorganized sector and therefore these discrepancies may occur, no specific explanation could be offered by him." 2.5. In view of above findings ld. CIT(A) restricted the disallowance to 10%, inter alia, observing that major expenses were coming from organized sectors, namely, Associated Cement Company Ltd., Aggarwal Marble India Pvt. Ltd. etc. He pointed out that when disallowance was made on account of non verifiable natu....