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TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 24
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.... 09.05.2017 and thereby causing delay of 112 days. The explanation is supported by an affidavit and further it was submitted that the mistake has happened due to inadvertence as well as due to ignorance of importance of documents by the concerned staff of the assessee. Therefore it was pleased that delay caused is inadvertent and unintentional therefore, may be condoned. 3. The ld DR objected to the application of condonation of delay stating that delay caused of 112 days is not explained. 4. We have carefully considered the rival contentions and also gone through the reasons of delay in filing of the appeal. The assessee has given the cogent reason that the order of the ld CIT(A) was inadvertently placed by the office assistant and was traced at the time of finalizing the accounts only. The Hon'ble Supreme Court in Ramnath Sao Vs. Gobardhan Sao AIR 2002 SCC 1201 has held that pedantic and hyper-technical approach should not be taken to defeat the valuable right of the parties to have the decision on merit. No one benefits by causing delay against his own cause or against his own interest. According to us the application for condonation is bona fide and there is sufficient ca....
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....said disallowance has been confirmed despite the fact that the disallowance made by the AO is adhoc and arbitrary. (iii) That the expenses having been incurred wholly and exclusively for the purpose of business, the learned CIT(A) was not justified in upholding the disallowance of Rs. 47,537/- on account of vehicle running and maintenance. 7(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in upholding the action of the AO in disallowing a sum of Rs. 31,898/- being 10% of the depreciation on vehicles. (ii) That the above said disallowance has been confirmed despite the fact that the disallowance made by the AO is adhoc and arbitrary. (iii) That the expenses having been incurred wholly and exclusively for the purpose of business, the learned CIT(A) was not justified in upholding the disallowance of Rs. 31,898/- on account of depreciation on vehicles, (iv) That the disallowance of the depreciation on account of personal use is otherwise untenable in law. 8(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in upholding the action of the AO in disallowing a sum of Rs....
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.... maintaining its books of accounts on mercantile systems of accounting furnished its return of income on 12.10.2010 declaring income of Rs. 14372010/-. The assessment u/s 143(3) of the Act was made on 28.02.2013 wherein, several additions were made and total income was assessed at Rs. 25740197/-. The assessee aggrieved with the order of the AO preferred an appeal before the ld CIT(A), who sustained the additions to some extent and therefore the assessee is in appeal before us. 7. The first ground of appeal is general in nature and therefore same is dismissed. 8. The second ground of appeal is with respect to the addition of Rs. 2657303/- on account of purchases made from Suresh HYP Enterprises amounting to Rs. 3192806/- for the reason that the 133(6) enquiry letter sent to that party came back un served because of incorrect address. The assessee produced copy of account, income tax return and bank statement of the party. On verification of the bank statement ld Assessing Officer found that whenever the cheque is credited in that bank account, cash is immediately withdrawn. The AO was further of the view that account is opened by depositing Rs. 1000 and closing balance is also mea....
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....thura, Karuli, Rajgarh, Udaipur and other sites. As the suppliers are separately assessed to tax the issue of the low balance is required to be addressed by them and it cannot be a reason for disallowance of the purchases from that party, as many times purchases are also made from bank borrowers. Furthermore, merely the assessee being the introducer for opening the bank account also do not support the contention of the AO , unless there is some connivance of the assessee is proved in withdrawal of cash from the bank accounts . To verify this ld AO could have obtained these instruments from the bank which he has failed to do. Further, during the course of assessment proceedings, the AO has verified the books of accounts, bills, vouchers, master rolls, bed sheet and logbooks and on such verification, no defect in the books of the assessee was pointed out. The Assessing Officer made the whole addition by pointing out certain lacunas in the bank account of the suppliers of the assessee, which cannot be permitted. Merely because 133(6) notices issued to the party returned un-served though it was the same address, which was supplied by supplier while filing its income tax return, no faul....
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.... disallowance 1. Telephone expenses 10 53007/- 2. Vehicle running and maintenance 10 47537/- 3. Depreciation on vehicles 10 31898/- 4. Business promotion 10 19225 5. Expenditure on conveyance 10 75885/- 6. On site expenses 10 55000/- 15. The ld Assessing Officer has made above disallowances on adhoc basis and for the reason that there may be personal expenses or not wholly and exclusively incurred for the purposes of the business. The ld CIT(A) has confirmed the above disallowances stating that disallowances are very reasonable and on account of personal expenses or not wholly and exclusively incurred by the assessee for the purposes of business. 16. Ld. A R vehemently contested that neither the AO nor the CIT appeal has pointed out any such instances of such expenses which are been incurred not for the purpose of the business though the full books of accounts, vouchers bills etc were produced before them. He submitted that ad hoc disallowance without pointing out any instances of such expenses cannot be made. 17. Ld DR supported the order of the lower authority and submitted that instances of personal expenses as well as the expenses for non-business pur....