TaxTMI 
TaxTMI 
2019 (10) TMI 920
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....lowance of Rs. 100,000/- on lump sum basis. 2. That the Ld. A.O. grossly erred on Law and facts in making the disallowance out of Soyabean expenses @ 20% on ad hoc basis. The Ld. C.I.T.(A) allowed in part and erred in sustaining the disallowance out of Soyabean expenses Rs. 27976.00. 3. That the Ld. A.O. grossly erred on Law and facts in making the disallowance out of Wheat expenses @ 20% on ad hoc basis. The Ld. C.I.T.(A) allowed in part and erred in sustaining the disallowance out of Wheat expenses Rs. 23481.00. 4. That the Ld. A.O. grossly erred on Law and facts in making the disallowance out of Various administrative expenses @ 20% on ad hoc basis. The Ld. C.I.T. (A) allowed in part and erred in sustaining the disallowance out o....
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....at the A.O. was not given a single example of self-prepared voucher not verifiable but the disallowance of 10% is based on surmises and conjecture. The assessee has produced all the details of each and every expenditure incurred on transport giving the details of commodity transported and the destination. The payment is made as per the rates applicable as prescribed by the transport unions in the city. Thus, the disallowance made by the A.O. and sustained by the ld. CIT(A) is not justified. 4. On the other hand, the ld DR has submitted that the assessee has supported its expenditure by self-made vouchers in respect of payment of less than Rs. 20,000/- in each case, therefore, the assessee has deliberately shown the payment in cash of less ....
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....he assessee has debited amount of Rs. 2,79,762/- under the head soyabean expenses. On examination of the details of the expenditure, the A.O. observed that the assessee has paid some of the expenses in cash which are below Rs. 20,000/- for which no supporting evidence is available with the assessee except self-made vouchers. Thus, the A.O. on the similar ground as disallowance made on account of transport expenses, has made disallowance of 20% of the expenses. On appeal, the ld. CIT(A) has restricted the disallowance to 10% of the expenses. 7. Before the Tribunal, the ld AR of the assessee has submitted that there are vouchers for every payment. The A.O. has not justified the self-prepared voucher as these self-prepared vouchers are docume....
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....range persons to the traders in a particular mandi. Therefore, once the labourers are known and working almost regularly with the assessee and other traders then the details and particulars of the recipients should be mentioned in the vouchers. Even when these are regular workers working in the mandi then vouchers must have been got signed from the recipients. Since the entire payment is made in cash, therefore, the disallowance restricted by the ld. CIT(A) to 10% is proper and reasonable. Hence, I do not find any reason to interfere with the order of the ld. CIT(A) qua this issue. 10. Ground No. 3 of the appeal is regarding disallowance of wheat expenses, which was restricted by the ld. CIT(A) to 10% from 20%. 11. I have heard the ld AR ....
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....e disallowance made by the A.O. and sustained by the ld. CIT(A) on account of depreciation on car is deleted. Similarly, telephone expenses are also not required to be proved by any voucher when the telephone bill itself is a proof. Even otherwise, this expenditure can be verified from an independent source. In absence of any verification conducted by the A.O. regarding the genuineness of the expenditure, the disallowance made and sustained by the ld. CIT(A) is not justified, the same is deleted. As regards the office expenses, after going through the details of the expenditure, it is noted that the majority of the expenditure has been incurred through cheques except only one item of expenditure which is labour charges of Rs. 2,150/- for ....