2021 (7) TMI 1099

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....power supply, data entry and business support. It filed its original return of Income on 20.03.2013 declaring total income of Rs. 34,83,290/-, which was revised on 31.03.2014 declaring total income of Rs. 1,29,51,570/-. During the course of assessment proceedings, the A.O. noted that assessee has debited an amount of Rs. 40,20,897/- for computer expenses under the head "Administrative Expenses". On being questioned by the A.O, it was explained by the assessee that these expenses are on account of hiring of computers for the dayto- day working of the company. According to the A.O, the assessee could not produce proper bills for which he disallowed an amount of Rs. 8,04,179/- being 20% of such expenses and completed the assessment determining....

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....the CIT (A) has not provided us the reasonable opportunity to produce the ledger accounts for confirmation, details of modes of payment to vendor resulting to 20% disallowances of Computer Expenses. 2. That The disallowance was made on arbitrary basis by the Assessing Officer and the same disallowance was affirmed by CIT(A). 3. That the CIT(A) never asked the third party confirmation from those parties whose Name and PAN was provided with whom Computer Expenditure has been incurred with for the AY 2012-13. Moreover, the CIT(A) has also not provided us the opportunity to produce any third party confirmation of those vendor. 4. For that the appellant craves leave to add / or alter, amend the Grounds of Appeal taken ....

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....ted that since the Ld. CIT(A) herself has asked to submit all bills pertaining to computer expenses, therefore, application for additional evidence was not put before her and not required by her at that point of time. She submitted that in another case for the same assessee, she had asked the assessee to furnish application for additional evidence which was done. She submitted that even otherwise also when the assessee had already filed all the details before the A.O, therefore, filing of the said details before the Ld. CIT(A), cannot amount to furnishing of additional evidences. Referring to various decisions, she submitted that when no defect was pointed-out by the lower authorities in the details filed, the lower authorities cannot make ....

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.... of the paper book shows that the computer printing and stationery expenses amounts to Rs. 31,44,007/-, computer hire charges amounts to Rs. 5,60,558/-, and computer repairs and maintenance amounts to Rs. 3,16,332/-, totaling to Rs. 40,20,897/-. The assessee had given the bills and vouchers of all the expenses under the above three items. Most of the payments have been made through banking channel after deduction of TDS. We find force in the arguments of Learned Counsel for the Assessee that when 77% of the expenses related to printing and stationery i.e., OMR sheets since the assessee is engaged in conducting exams for various Government bodies and the repair and maintenance charges are meager amount of Rs. 3,16,332/- and the computer h....