2022 (7) TMI 479

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....dition to the extent of Rs. 1,02,350/- made by Ld. ITO on the ground of non-availability of vouchers etc. in support of expenses claimed in books of account. The worthy CIT(A) has erred in upholding the action of Ld. ITO as stated above without appreciating the fact that Ld. ITO has not specifically pointed to any particular voucher or documentary evidence not made available to him. 2. The worthy CIT(A) has also erred in referring to cases decided by Hon'ble ITAT Amritsar Bench in support of his judgment without quoting such cases in detail, the issues & nature of expenses involved in such cases. He has also erred to appreciate that most of the expenses targeted by Ld. ITO like freight & carriage, petrol & lubricant, staff welfare expens....

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....ng Officer that the assessee claimed an amount of Rs.20,91,883/- under the head of 'Building Repairs and Renovations' while verifying the details. The AO was of the view that the expenditure incurred on wooden flooring was of enduring nature hence it was capital expenditure. He, therefore, disallowed the sum of Rs. 4,76,068/- allowed depreciation of Rs. 29,455/-. Further, the Assessing Officer also noticed that the additions were made into the plant and machinery at Rs. 29,91,833/-. He noticed that the assessee claimed excessive depreciation of amount of Rs.67,500/- and same was added into the income of the assessee. Lastly the Assessing Officer made addition of Rs. 8,714/- being the difference between the purchase price. Thus, the Assessin....

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..... ITO) incurred on repairs & maintenance of hotel treated as capital expenditure NOW THE ARGUMENTS GROUND NOS. 1 & 2 Your Honour- As is a common knowledge, various expenses have to be incurred to run the business of hotel. During the year the assessee incurred following expenditures. Misc. Expenses: 1,54,460/- Petrol & Lubricant 3,82,099/- Staff Welfare 2,10,661/- Telephone/Mobile Expenses 1,71,541/- Travelling expenses 3,59,060/- Vehicle Maintenance 1,03,090/- Total: 20,47,021/- Disallowing 5% of the above expenses, the Ld. ITO notes in his Asstt. Order at page 3, para 4.1 "During the course of assessment proceedings, the assessee was required to produce supporting vouchers to substantiate these expenses....

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....n record. Now your honor, which are those petty vouchers which are not available with the assessee. Taxi-auto receipts, Few Misc. expenses like brooms or kerosene used for cleaning etc., uniform cleaning expenses etc. Your honor all these expenses are very petty in nature & usually incurred in informal sector where vouchers are not available. But nevertheless these expenses are incurred wholly & solely for business purposes. Hence the addition made by Ld. ITO & sustained by worthy CIT(A) needs to be quashed. In support of my argument, reliance is placed on: a) Pearl Farben Chem(P) Ltd(ITA No.1122/Mum/2010) b) DCIT vM/s EPCOT Securities (P) Ltd.(ITA No.395/Mum/2009)" 7. On the contrary, the Ld. Sr. Departmental Representative o....