2019 (3) TMI 1294

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....irming 10% adhoc disallowance made by the learned Deputy Commissioner of Income Tax ('AO') in respect of the following expenses: Sr. No. Particulars Amount (Rs.) 1 Repairs - heavy load equipment 26,58,765/- 2 Repairs - others 12,25,683/- 3 Port expenses 28,74,863/- 4 Mobilization expenses 19,00,208/- 5 Misc. expenses 16,68,707/- 6 Freight expenses 90,41,348/- 7 Transit expenses (including fuel expenses) 38,93,622/- 8 General cargo transportation expenses 36,55,441/- 9 Rates and taxes 33,79,304/- 10 Crew expenses 8,93,585/- 11 Contract staff expenses 7,71,930/-   Total 3,19,63,456/- The adhoc disallowance of ....

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....iture of Rs. 4.55 Crore company has identified expenditure amounting to Rs. 67,05,769/- (approximately 21% of total expenditure) for which adequate supporting are not available (refer Note 19 of Schedule ió of the audited annual account for the year ended 31.03.2011). The statutory. Auditor and Tax Auditor has verified the expenditures incurred on ODO operations and did not offer any adverse comments for ñot supported by adequate vouchers/invoice etc. except those reported in Note 19 of the Schedule 16 of the audited annual account for the year ended 31.03.2011. Kindly refer page No. 22. 3. The Id. AO has asked the appellant to produce documentary evidence in support of claim of expenses for repairs (details given on ....

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....A) sent the additional evidence for verification to A.O. He noted that the A.O. has not responded. Then he proceeded to take adverse reference against the assessee. The ld. CIT(A) held as under: 6.2 During the course of appellate proceedings, the appellant has given additional evidences under Rule 46A of the IT Act, which has been remanded to the AO for verification of the details along with supporting books of accounts and appeal vouchers. However, in spite of various reminders, the AO has not produced the remand report and even not availed an opportunity of being before the undersigned personally on 16.03.2017 at 11:3Oam. 6.3 I have carefully considered the rival submissions and the facts of the case. The appell....