2018 (5) TMI 1719

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.... restored by allowing the M.A. filed by the assessee. 2. Briefly, the facts of the case are that in this case scrutiny assessment under section 143(3) was made on 31st March, 2004 at an income of Rs. 99,53,380/-. The assessee filed appeal before Ld. CIT(A) who vide his order dated 24th March, 2006, deleted the addition of Rs. 67,79,873/- and consequent to the appeal effect, the income was assessed at Rs. 31,73,507/-. The assessee filed appeal against the order of the Ld. CIT(A) for upholding the disallowance of Rs. 13,68,500/- made by A.O. on account of job work and cost of repairs before the Tribunal and the Tribunal vide order dated 31st October, 2008 restored the issue of disallowance of expenses of Rs. 13,68,500/- to the file of A.O.....

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....unt and petty cash book. The assessee however, filed copies of the bills in respect of the above expenses for which the A.O. found certain discrepancies. The A.O. accordingly made the addition of Rs. 13,68,500. 4. The assessee explained before the Ld. CIT(A) that assessee company is engaged in the business of repair and servicing of vehicles and has recorded the total sales of Rs. 3,37,52,611/- in assessment year under appeal and it had incurred total expenses of Rs. 1,70,66,035/- on account of cost of services and repairs which inter alia included Rs. 9,75,174/- being job work and Rs. 5,29,445/- being cost of the service and repairs. All entries are recorded in the books of account and are supported by independent and third party vouche....

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....h assessee enclosed statement of job work charges and cost of service and repairs in excess of Rs. 1001/- and Rs. 2500/- including copies of vouchers which is supported by the details filed at pages 8 to 29 of the Paper Book. A.O. has wrongly mentioned in the assessment order that no petty cash book has been produced as per ITAT order because there is no direction. PB-21 is reply filed before Ld. CIT(A) in which assessee has mentioned that assessee is producing cash book along with petty cash book along with vouchers for the petty cash book for verification along with application under Rule 46A of I.T. Rules. Copy of the application under Rule 46A of I.T. Rules is also placed on record in which assessee explained that during reassessment pr....

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....ture of business of assessee clearly reveal that the above amount shall have to be incurred by assessee for the purpose of business of the assessee. In the first round of the proceedings, the Tribunal restored the matter to the file of A.O. for examining the details and evidence by giving reasonable, sufficient opportunity of being heard to the assessee. The Tribunal in the first order noted submission of assessee that day-to-day expenses were recorded separately in the petty cash book and the aggregate amount was then posted in a ledger on a single date. The extract of the petty cash book were filed before the Tribunal. The Tribunal considering the copies of the petty cash book noted that this has not been examined by the A.O. and the Ld. ....