TaxTMI 
TaxTMI 
TaxTMI 
2019 (8) TMI 330
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....-6(3)(4), Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in deleting the disallowance made u/s.14A of the Act in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee is engaged in the business of manufacturing all forms of drugs and molecules. The ld. AO observed that the assessee had claimed exempt income in the form of dividend in the sum of Rs. 11,53,821/- in respect of investments made in equity shares. The ld. AO observed that assessee company had made suo moto disallowance of Rs. 3,92,517/- u/s.14A of the Act read with third limb of rule 8D of the rules in the return of income. The ld. AO made further....
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....und No.2 raised by the revenue is with regard to disallowance made u/s.36(1)(va) r.w.s. 2(24)(x) of the Act in respect of delayed payment of provident fund and ESI dues beyond the due dates specified under the respective acts. 6.1. We have heard rival submissions. We find that the date of remittance of PF and ESI dues for each month is duly tabulated in pages 8 & 9 of the order of CIT(A) and from which it is seen that the entire dues were duly remitted by the assessee on or before the due date of filing of return of income and hence, by respectfully following the decision of Hon'ble Jurisdictional High Court in the case of CIT vs. Ghatge Patel Transport Ltd reported in 368 ITR 749, CIT vs. Hindustan Organic Chemicals Ltd. reported in 366 I....
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....d turnover chart together with the list of travelling expenses incurred from A.Yrs 2009-10 to A.Yrs 2014-15 wherein it could be seen that the travelling expenses constituted on an average 6.43% of the total turnover. It was also pleaded by the assessee that the entire payments were made through concerned bank accounts of the representatives and these were incurred from time to time in the regular course of its business. The assessee also submitted documentary evidences including bills and vouchers in three box files containing all the details of travelling expenses along with all the vouchers for four months vide letter dated 04/11/2016 before the ld. AO while this is so, it was argued that there was no need to make any ad hoc disallowance ....
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....16. It was stated that the vouchers for the balance eight months were also produced for verification. On perusal of the copy of the letter dated 04.11.2016 submitted by the appellant to the AO during the assessment proceedings, it is seen that the appellant furnished the bills and vouchers in respect of this expenditure for a period of 4 months and produced the bills and vouchers for the remaining period also for the verification of the AO. Hence, it is not correct to state that the appellant failed to produce supporting documentary evidences. 24. As regards the observation of the AO that inflation of expenses and personal use cannot be ruled out, it is seen that this observation does not represent a finding of fact based on verification ....
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....gard to the same and the discussion made regarding the facts of the case in the preceding paragraphs, it is held that the ad-hoc disallowance of 5% of the Travelling & Conveyance expenses made by the AO is not justified in the facts of the appellant's case. Hence, the AO is directed to delete the disallowance of Travelling & Conveyance expenses of Rs. 26,90,802/- made in the assessment order. This ground of appeal is therefore allowed. 7.2. We have heard rival submissions. We find from the aforesaid categorical observation and findings of the ld. CIT(A) that no ad hoc disallowance of travel expenses @5% in the sum of Rs. 26,90,802/- is warranted in the facts and circumstances of the case. However, we find that this Tribunal for A.Y.201....