2017 (12) TMI 566
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....inafter referred to as 'the assessee'), by filing the present appeals sought to set aside the impugned order dated 19.03.2013 passed by the Commissioner of Income-tax (Appeals)-1, New Delhi, for the Assessment Years 2007-08, 2008-09, 2009-10 & 2010-11 on the grounds inter alia that :- "ASSESSMENT YEAR : 2007-08 1. That the learned CIT(A) has erred in law and facts by not quashing the order passed by the learned AO and therefore the learned AO should be directed to accept the returned Income. 2. That the learned CIT(A) has erred in law and facts by confirming the disallowance of other expenses of Rs. 25,99,106/- (correct amount as per order of ld. CIT(A) is Rs. 36,68,196/-) (being 10% of expenses of Rs. 2,59,91,061/-) and therefore the ....
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...., as per our return or Income is to be considered for taxation purpose." "ASSESSMENT YEAR : 2010-11 1. That the learned CIT(A) has erred in law and facts by not quashing the order passed by the learned AO and therefore the learned AO should be directed to accept the returned Income. 2. That the learned CIT(A) has erred in law and facts by confirming the disallowance of other expenses of Rs. 12,34,523/- (correct amount as per order of ld. CIT(A) is Rs. 60,34,991/-) (being 10% of expenses of Rs. 4,32,46,630/-) and therefore the learned AO should be directed to not to disallow any expenses, while computing the total income. 3. That Book Profit u/s.115JB of the Act, as per our return or Income is to be considered for taxation purpose....
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....s addressed by ld. Authorized Representatives of the parties to the appeal and facts & circumstances of the case, the sole question arises for determination in this case is :- "as to whether the ld. CIT (A) has erred in sustaining the disallowance of expenses to the tune of Rs. 36,68,196/-, Rs. 38,40,890/-, Rs. 39,06,640/- & Rs. 60,34,991/- in Assessment Years 2007-08, 2008-09, 2009-10 & 2010-11 respectively merely on the basis of guess work and estimation as contended by assessee? 7. Undisputedly, the AO has proceeded to make disallowance @ 10% of the indirect expenses and ld. CIT (A) without disturbing the disallowance rate of 10% adopted by the AO only disallowed expenses having element of non-business purpose or personal expenses. I....
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.... Postage and Courier Charges 175469 0 Printing & Stationery Expenses 495790 0 Rent Rates & Taxes 484500 0 Repairs & Maintenance - Others 96762 96762 Service Tax 1007290 1007290 Telephone Expenses 1067032 1067032 Travelling Expenses 1170195 1170195 Travelling Expenses - Sales Team 640616 0 Vehicle Running & 1734702 1734702 Maintenance Expenses Advertisement Expenses 2158530 0 Bundling Charges 3090 0 Commission on Consignment Sales 110595 110595 Commission Expenses 878587 878587 Discount and Rebate Account 6850132 6850132 Freight Outward - S....
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.... in favour of the assessee and this issue is remanded to the file of the ld. CIT (A) to decide afresh by providing an opportunity of being heard to the assessee. Grounds No.1 & 2 of all the appeals are determined in favour of the assessee for statistical purposes. GROUND NO.3 OF ITA NO.3642/DEL/2014 (AY 2007-08), ITA NO.3643/DEL/2014 (AY 2008-09), ITA NO.3644/DEL/2014 (AY 2009-10) & AND ITA NO.3645/DEL/2014 (AY 2010-11) 12. This ground is qua the addition to the book profit computed u/s 115JB of the Income-tax Act, 1961 (for short 'the Act') instead of addition to the normal loss computed under the Act. The ld. CIT (A), after examining the submissions made by the assessee directed the AO to compute the tax liability u/s 115JB str....