TaxTMI 
TaxTMI 
2019 (8) TMI 148
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....rders are passed by the ld. Lower authorities are contrary the material, opposed to the facts and equity and law. 2. That on the facts and in the circumstances of the case the ld. Lower authorities have erred were not justified in not allowing the all claim of various expenses are claimed by the appellant and therefore the following expenses may please be allowed. i.Rs. 7,32,106/- out of Rs. 29,28,424/- being 25% of traveling expenses. ii. Rs. 8,68,730/- out of Rs. 86,87,305/- being 10% of building repair expenses. iii. Rs. 85,730/- out of Rs. 857,300/- being 10% of repair and maintenance. iv. Rs. 2,60,355/- out of Rs. 1,46,68,471/- depreciation v. Rs. 1,78,527/- out of Rs. 1,78,527/- be....
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....g expenses to the extent of 10%. Rest of the disallowances and additions were confirmed by the Ld. CIT(A). 6. Aggrieved against this, the assessee is in appeal before this Tribunal. Ld. Counsel for the assessee reiterated the submissions as made in the written synopsis. For the sake of clarity, the submissions of the assessee are reproduced as under: 7. Ld. Counsel for the assessee submitted that the books of accounts of the assessee are duly audited. The expenditure is duly supported by the supporting evidences. Further, Ld. Counsel for the assessee submitted that entire disallowance/additions have been made on adhoc basis without considering the material on record. 8. On the Contrary, Ld. D.R. opposed these submissions and suppor....
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....ract payments and duly deposited. In respect of disallowance of repairs and maintenance expenditure also, it is stated that the A.O. made disallowance on adhoc basis. In respect of both the disallowances, the revenue authorities have made purely on estimation basis. It is not a case where the assessee has inflated the expenses. Therefore, considering the totality of the fact, we restrict the disallowance to the extent of 5% of the total disallowance made in this regard. Another disallowance of gift and presents amounting to Rs. 1,78,527/-, it is stated by the Ld. Counsel for the assessee that the addition has been made purely on adhoc basis. It is stated that the A.O's allegation that vouchers were self-made and not reliable is not correct.....
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.... 2(ii) Building 89,87,305 10%-Rs. Confirmed Repairs Exp 8,68,730 2(iii) Repairs & 8,57,300 10% Rs. Confirmed Maintenance 85,730 2(iv) Depreciation 1,46,68,471 2,60,355 Confirmed Not pressed 2(v) Gifts & Present 1,78,527 2(vi) Interest Income 3,64,246 100% 2,69,724 Confirmed Confirmed FACTS During the assessment proceedings, it was noticed that the net profit of the appellant had decreased from 17% to 12.89%. Certain expenses had increased despite very low increase in turnover. The Turnover has increased from Rs. 60,14,05,202/- in A.Y. 11-12 to Rs. 62,77,41,239/- in A.Y. 12-13. The analysis of expenses is as follows:- Sr. No A.Y 2012-1....
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....ermissible and, consequently, addition to income of assessee made on account of such disallowance, was to be deleted b. ACIT vs. Ganpati Enterprises Ltd. [2013] 32 taxmann.com 262 (Delhi - Trib.) It was held that where Id. AO failed to give details of expenses which were found unverifiable and made an ad hoc disallowance, said disallowance was to be deleted. Ground No 2(i) Disllowance of Travelling Expenses (AO pg. 2 para 4; (ITA), AO'S/CIT(A)'S ALLEGATION:- pg.5 para 5) Some of the Vouchers were not verifiable with supporting bills and a sample voucher dated 05.07.11 amounting to Rs. 5,000/- was referred on AO, Pg 3. SUBMISSIONS a. The Complete sets of Vouchers with supporting bills were submitted bef....
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.... a. The Total Expense under this head comprises of following Particulars AMC Charges Erection Charges Computer Repairs Amount PB 55,150 74-76 87,675 77-82 Equipment Repairs Furniture Repairs Trollies Repair Office Maintenance & Securities Maintenance & Development Charges Total 2,63,512 87-99 12,451 104 38,473 105-107 92,909 100-103 2,75,745 83-86 31,386 108 8,57,300 b. The Id AO disallowed 10% of the total expenses, i.e 85,730/- alleging that some of the Vouchers are missing and bills not maintained properly. Although, no specific instance was brought on record. The appellant has already submitted the complete ledger accounts along with the supporting ev....