TaxTMI 
TaxTMI 
2020 (7) TMI 126
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....ssee before the Ld. CIT(A), therefore, he has dismissed those grounds by referring this fact at para 6 of the impugned order and, therefore, before me the Ld. AR fairly did not press ground nos. 4 and 5 and, therefore, the same are dismissed. 4. Coming to ground no. 2 which is against the action of the Ld. CIT(A) in confirming the disallowance of miscellaneous expenses of Rs. 2,80,900/-. The brief facts as noted from the assessment order is that the AO noted that the assessee had filed return of income on 28.09.2014 disclosing total income of Rs. 29,99,270/-. Later, the case was taken up for scrutiny and after issuing statutory notice u/s. 143(2) of the Income Tax Act, 1961 (hereafter referred to as the "Act") the AO notes that the assesse....
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....me the practical difficulties that are faced in the North East areas where the terrain (hilly) and roads are difficult to ply trucks. According to him, the drivers and cleaners of the trucks incurred small expenses while plying the truck in these remote areas and pointed out that this is due to the bad condition of the hilly terrain they come across certain practical difficulties which are not generally faced in urban areas while plying the trucks. Therefore, according to him, there is a practical difficulty in keeping vouchers of each and every expenses incurred by the drivers and cleaners. According to him, when the fact is that assessee is returning gross profit of 25.80% even under the difficult conditions should be appreciated; and in ....
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....burst etc.) for which the local repair shops insist on cash and were reluctant to give any bills/vouchers. The truck drivers claimed the refund from the assessee the expenses through self made vouchers and since the assessee's central office is at Kolkata it was not possible to collect all the vouchers. And these expenses in cash duly shown in the ledgers and books regularly maintained in the course of business and later are put cumulatively under the head 'Miscellaneous Expenses' for which only self made vouchers could be produced. According to the Ld. AR, the assessee's accounts are audited and the auditor has not found any mistakes or short-comings. The AO as well as the Ld. CIT(A) has made the disallowance without rejecting the books o....
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....hat these expenses were only for the purpose of the business of the assessee and, therefore, he disallowed the same. Aggrieved, the assessee is before me. 8. Having heard both the parties, it is noted that the assessee claimed puja expenses of Rs. 1,65,308/- which has been disallowed by both the authorities below on the ground that there was no voucher to substantiate the claim and since the expenses were in cash they disallowed it. Before me, it has been contended by the Ld. AR that puja expenses are inextricably connected with the business of the assessee. According to him, the drivers and cleaners performed puja every day before they start the journey to the destination and this is on the belief that if puja is performed to God, the veh....