2019 (6) TMI 281

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....lowance of a sum of Rs. 5,00,000/- on account of purchase of material and that too, without pointing out any discrepancy in the books of accounts so maintained by the assessee - appellant and as such, the said disallowance needs to be deleted. 1.1. That the learned Commissioner of Income Tax (Appeals) has failed to appreciate the basic fact that all the purchases were duly backed by materials/ evidences, which have been arbitrarily brushed aside and that too without rebutting the documentary evidences so furnished by the assessee - appellant and thus, the addition so made needs to be deleted. 2. That the learned Commissioner of Income Tax (Appeals) has erred in law and on facts in sustaining a disallowance of Rs. 1,03,295/....

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....lls/vouchers are missing and the assessee also explained that these might have been misplaced due to work at various sites or many a time, they are incurred out of imprest account. The Assessing Officer made disallowance of Rs. 5 lacs on account of unverifiable purchase to plug the leakage of Revenue. 3. In the assessment proceedings, the Assessing Officer noticed that the assessee had claimed expenses of Rs. 5,42,015/- and on account of depreciation of Rs. 4,90,928/-. The Assessing Officer for want of logbook made disallowance of 1/5th of the said expenses to prevent the revenue leakage against personal use of vehicle and accordingly made an addition of Rs. 2,06,589/-. 4. Further, the Assessing Officer noticed that the assessee had d....

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....ted the impugned order. He submitted that complete bills/vouchers were not produced before the Assessing Officer and personal use of vehicle and telephone cannot be denied. Therefore, the ld. CIT(A) was justified to sustain the impugned additions. 7. After hearing both the parties and going through the entire material on record we find that the AO has noticed that some bills/vouchers were missing and the assessee has also accepted that vouchers might have been misplaced due to work at various sites or many a times, these would have been incurred out of imprest account. However, the findings of the Assessing Officer could not be rebutted properly. Therefore, the lower authorities are justified in making addition of Rs. 5,00,000/-. The pri....