TaxTMI 
TaxTMI 
2014 (1) TMI 1911
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....n, which are interconnected, and which we are taking up together, are as follows:- 2. The ground raised by the A.O. in appeal are as under:- 1. On the facts and circumstances of the case, Ld. CIT(A) has erred in deleting the disallowance of Rs. 30,00,000/- made by the AO on account of various expenses. 3. The ground raised by the assessee in Cross Objection are as under:- 1. That, on the facts and circumstances of the case and in law and in any view of the matter, the Ld. Commissioner of Income Tax (Appeals) has erred in upholding the disallowance of Rs. 1,00,000/- in lump sum on ad hoc basis of total disallowance of Rs. 31,00,000/- from various expenses, just to maintain the consistency of disallowances uphold by hi....
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...., oral arguments put forth before me and decisions relied upon by the Ld. AR of the appellant and carefully considered and found that the Assessing Officer has disallowed Rs. 31,00,000/- in lump sum on ad hoc basis out of various expenses, which were part of purchase of material consumed during course of business and debited to the trading account. The Assessing Officer has assigned the reason for disallowance mentioning that the appellant could produce the bills for some expenses only and the self made vouchers for expenses, which were not supported with the bills. The Ld. AR of the appellant vehemently contested that the entire expenditure were supported with bills and vouchers. The appellant is a construction contractor and according to ....
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....ontended that, since the material consumption was reduced and trading results was progressive i.e. better than preceding year, then the further disallowance of Rs. 31,00,000/- out of various expenses related to material purchases and debited under head purchases in trading account and duty considered while working out the gross profit is not justified. I have duly considered all these submissions and contentions. It is correct that the gross profit in terms of percentage was increased. But, the Assessing Officer had disallowed Rs. 1,50,000/- during preceding assessment year i.e. 2009-10 also out of various expenses debited to trading account as well as profit and loss account for want of vouchers. The same issue came up in the appeal before....
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....ar as these grievances are concerned, we find that the Assessing Officer had disallowed Rs. 1,50,000/-, out of expenses claimed as deduction, on the ground that vouchers and supportive evidences are not available. In appeal, learned CIT(A) took note of assessee's submission that AO's requisitions were duly complied with and held that "the ad hoc disallowance of Rs. 1,50,000/- is not sustainable" but yet retained the disallowance of Rs. 75,000/- to take case of "possibility of leakage in self made vouchers". None of the parties is satisfied, and both of them are before us. 8. We see no reason to take any review of the matter than the view taken in assessee's own case for the immediately preceding year. In view of the above dis....