TaxTMI 
TaxTMI 
TaxTMI 
2019 (3) TMI 1966
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....6 grounds of appeal. All the grounds are related to single issue of disallowance of expenditure Rs. 1,63,64,142/- under various heads. 3. The brief facts of the case as emanating from records are : The assessee company is engaged in the business of trading of coal and steel. During scrutiny assessment proceedings, the Assessing Officer disallowed expenditure tabulate as under : i. Manufacturing Expenses Rs. 2,36,176/- ii. Consultancy Charges Rs. 3,38,447/- iii. Travelling Expenses (Director) Rs. 4,11,655/- iv. Professional Fees Rs. 68,000/- v. Selling Expenses Rs. 290/- vi. Interest paid to Bank Rs. 68,51,977/- vii. Interest paid to other Rs. 50,63,171/- viii. Interest on vehicle loan Rs. 81,572/- ix. Bank Commission and C....
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....order dated 22-05-2015 upheld the findings of Commissioner of Income Tax (Appeals) and deleted the addition. 5. On the other hand Shri U.U. Kasar representing the Department vehemently defended the assessment order and prayed for reversing the findings of Commissioner of Income Tax (Appeals). 6. Both sides heard. Orders of the authorities below perused. The Revenue is in appeal against deleting of various expenditures aggregating to Rs. 1,63,64,142/-. The Assessing Officer made addition raising doubt over the genuineness of expenditures as well as the quantum of expenditure. In First Appellate Proceedings the Commissioner of Income Tax (Appeals) deleted the addition by observing as under : "In my considered view, the AO has failed to di....
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....d selling expenses only on the basis that such expenses are not required without going into the details of such expenditure, and whether they have been actually incurred or not. The expenditure has been disallowed by the AO summarily without proper verifications. I find that the other expenses in the Profit and Loss Account which are also of similar nature have been allowed as deduction. Since it is held that the assessee had carried out the regular business activity on which profit is earned, the expenditure incurred for such transaction or for facilitating the business have to be allowed. I find that the assessee has incurred expenditure and no defect/infirmities have been pointed out by the A.O. It is to be further noted that no evidence....