TaxTMI 
TaxTMI 
2022 (6) TMI 1104
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.... or documentary evidence not made available to him. 3. On circumstances and facts of the case, the worthy CIT(A) has erred in not appreciating the fact that the additions made by Ld. ITO were made in a routine & perfunctory manner without application of mind & deserved to be deleted in toto and not in part. 4. On circumstances and facts of the case, the worthy CIT(A) has erred in not appreciating the fact that the additions made by Ld. ITO were made merely on the pretext that the net profit rate of the assessee in the under assessment had decreased in comparison to immediately preceding year. However, the assessee in the written arguments before the worthy CIT(A) has clearly demonstrated that the finding of Ld. ITO is not correct & as such deserved to be deleted in toto and not in part. 5. On circumstances and facts of the case, the worthy CIT(A) has erred in not appreciating the fact that the Ld. ITO has wrongly considered "Branch Office Expenses" for addition purposes which were not even claimed by the assessee in the year under assessment and pertain to AY 12-13. This makes it clear that the additions made by Ld. ITO were made in a routine & perfunctor....
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.... assessee are reproduced as under: "Written Arguments before Hon'ble ITAT in respect of APPEAL NO. ITA 315/Asr/2018 M/S ABDUL SAMAD & SONS, H.S.H STREET, SRINAGAR KASHMIR-ASSTT. YEAR 2013-14 Your Honour, This is an appeal against the order of the worthy CIT(A), Jammu dated 28-02-2018 for Asstt. Year 2013-14 FACTS OF THE CASE The assessment in this case was framed by Ld. ITO u/s. 143(3), has made an addition of Rs. 3,29,677/- on account of disallowance of 15% of below mentioned expenses to the returned income of the appellant assessee for asstt. year 13-14: S. No. Particulars Amount 1 Travelling & Tours 209,275.00 2 Loading and Unloading 301,318.00 3 Vehicle Maintenance 396,108.00 4 Misc. expenses 23,359.00 5 Shop expenses 190,874.00 6 Telephone Expenses 81,834.00 7 Staff Welfare Expenses 53,345.00 8 Electricity & water exp 31,223.00 9 Discount allowed 99,903.00 10 Repair & Renewals (Bldg) 145,656.00 11 Freight and carriage Outwards 364,673.00 12 Branch office expenses 300,280.00 Total 2,197,848.00 Addition ....
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....luding profit on sale of land 0.38% 0.19% Net profit %age excluding profit on sale of land 0.07% 0.19% However, without giving adequate consideration to this vital piece information, the worthy CIT(A) proceeded to sustain addition to the extent stated above. In respect of vouchers etc. the assessee accepts that due to devastating floods of 2014, a major part of the appellant assessee's records got washed away. He produced FIR copy as well as CBDT instruction No. F No. 225/303/2014/IT/A.11 dated 28-11-2014(Please refer page 4 of CIT(A) order) to adopt a soft attitude in case of flood victims but unfortunately, both the authorities below ignored his pleas & proceeded with their decisions. The assessee also proved his case by comparing the expenses of Asstt. Year 2007-08, assessment whereof was completed u/s. 143(3) with those of the impugned asstt. Year. The tabulated results are given below: S. No. Particulars AY 13-14 AY 07-08 %age change Remarks Expenditure %age of Sales Expenditure %age of Sales 1 Travelling & Tours 209,275.00 0.06% 118,915.00 0.04% 0.....
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....d the submission and submitted that the disallowance was made on account of non furnishing of the vouchers and bills. Therefore, the Ld. CIT(A) was justified on confirming the addition. 8. I have heard the Ld. DR and perused the material available on record. We find that the Ld. CIT(A) has partly allowed the appeal by observing as under: "4.2 I have perused the assessment order as well as submissions made by the appellant and find that a disallowance of Rs. 3,29,677 has been made by the AO at the rate of 15% of the total expenses claimed under the heads- Travelling and tours, loading and unloading, vehicle maintenance, miscellaneous expenses, discount allowed, staff welfare, freight and carriage, electricity and water expenses. The addition has been made by the AO on the ground that some of the expenses claimed were not supported with bills/vouchers, most of them have been paid in cash and element of personal usage cannot be ruled out. The disallowance has been made at the rate of 15% of the total expenses claimed. 4.3. The appellant has stated that the expenses have been incurred for the business purposes only, hence disallowances made on the basis of estimati....