TaxTMI 
TaxTMI 
2019 (11) TMI 979
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....sessee is a Private Limited Company stated to be engaged in the business of running, operating, managing, maintaining and letting on hire various fleet of buses and other vehicles. Assessee electronically filed its return of income for A.Y. 2013-14 on 30.09.2013 declaring total loss of Rs. 2,71,97,713/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dt.26.02.2016 and the total loss was determined at Rs. 1,60,85,130/-. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A), who vide order dt.24.11.2017 (in appeal No.CIT(A), Pune-3/10121/2016-17) granted partial relief to the assessee. Aggrieved by the order of Ld.CIT(A), assessee and Revenue are now in appeal befo....
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....2013-14. 5.1. During the course of assessment proceedings on perusing the Profit & loss account, AO noticed that assessee has debited expenses on various accounts aggregating to Rs. 11,07,50,032/-, the details of which are tabulated at Para 5 of the assessment order. The assessee was asked to justify the expenses by producing the relevant documentary evidence. The assessee has filed the copies of bills and vouchers. On perusing the bills and vouchers furnished by the assessee, AO noted that the expenses were not fully verifiable by bills and vouchers and few of the vouchers were not having the name and signature of the recipients. AO was therefore of the view that the probability of non-business expenses cannot be ruled out. He according....
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.... 7. We have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to disallowance of expenses on ad-hoc basis. It is an undisputed fact that the assessee had furnished the requisite documents before the AO and produced the books of accounts. AO has proceeded to make a general statement about the expenses being not verifiable as some of the vouchers are self-made and they do not bear name and signature of the recipients. He on the basis of such surmises had concluded that the probability of the expenses for non-business purpose cannot be ruled out and accordingly, he disallowed Rs. 2% on aggregate amount on ad-hoc basis. We find that no instance of the expenses being for non-business ....
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....nt of interest has to be made u/s 36(1)(iii) of the Act. He thereafter worked out the proportionate interest disallowance at Rs. 88,97,580/- as per the details tabulated at Para 4.3 of the assessment order and made its disallowance. Aggrieved by the order of AO, assessee carried the matter before Ld.CIT(A), who after considering the submissions of the assessee deleted the addition made by the AO at Para 6.3.1 of his order and while deleting the addition he has also given a finding that assessee has sufficient interest free funds to advance to its sister concerns and it is not a case of diversion of interest bearing funds to the sister concerns. Aggrieved by the order of Ld.CIT(A), Revenue is now before us. 11. Before us, Ld. D.R. supp....