TaxTMI 
TaxTMI 
2022 (9) TMI 348
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.... CIT(A) has erred in partly upholding the action of Ld. ITO as stated in (1) above without appreciating the fact that Ld. ITO has not specifically pointed to any particular voucher 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. 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, After sales service, Repairs & Renovation, printing & stationary, Running & maintenance do not contain any personal element and cannot be subject to any disallowance on % basis. 5. The appellant craves leave to add, alter, modify or modify the grounds of appeal." 3. The assessee has raised the following grounds of appeal in ITA No. 298/Asr/2018:- "1. On circumstances and facts of the....
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.... of expenses involved in such cases. He has also erred to appreciate that most of the expenses targeted by Ld. ITO like Freight, After sales service, Repairs & Renovation, printing & stationary, Running & maintenance do not contain any personal element and cannot be subject to any disallowance on % basis. 5. The appellant craves leave to add, alter, modify or modify the grounds of appeal." 5. There is a sole and common issue, regarding the upholding of adhoc disallowances @ 10% out of expenses claimed by the appellants, on account of Freight, after sales service, Repairs & Renovation, printing & stationary, Running & maintenance, and therefore, these appeals are adjudicated by this common order. 6. The Assessing Officer completed the assessment under section 143(3) of IT Act with an addition of being 10% of expenses on adhoc basis which was partly upheld by the worthy CIT(A) to the extent of varying amount ranging from Rs. 1,50,000/- to Rs. 2,00,000/- on the ground of non-availability of vouchers etc. in support of expenses claimed in books of account. 7. None appeared for the assesses, however, the Ld. AR for the appellants filed written submission, contending therein that ....
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....ng & stationary are wholly & solely incurred for business & by no stretch of imagination, can there be any element of personal benefit in these expenditures .Further, TDS has been deducted & deposited on such expenditures, wherever applicable. The worthy CIT has recorded this on page 2 of his order dated 28-02-2018. It was also brought to his notice: 2) That Ld. ITO has stated in her order dared 09-02-2016 (page 2, para 2) that A/R of assessee produced bills & vouchers but were not supported by complete vouchers. But she has not pinpointed in her order about absence or unavailability of any specific voucher or supporting document of expenditure. During the appellate proceedings, the appellant assessee specifically brought to the notice of Ld. CIT(A) that: 3) That the details of all expenditures viz name of payee, date of payment, amount paid & mode of payment are duly entered in the books of account, which have been furnished before the Ld. ITO. 4) That the Ld. ITO has not made any sort of enquiry or cross verification from any of the payees to ascertain the genuineness of the expenses. 5) That all expenses have been made wholly & solely for business purposes & there....
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....Ld. DR, perused the written submissions filed by the assessee and the orders of the authorities below. The ld. counsel for the assessee has filed an application for the condonation of delay of one day for all the three appeals on account of postal department as the appeals have been sent by speed post on 2nd May, 2018 vide Speed Post R/No. EE845065207IN but has been delivered to the registry on 14th of May, 2018 within unprecedented delay of 12 days on the part of the postal department and resulting into the aforesaid delay in the filing of the said appeals. Considering the cause for the delay being due to the postal department, we accept the request of the assessee as genuine. Accordingly, the delay in filing these appeals are hereby condoned, the appeals are allowed to be heard on merits on the basis of written submission filed by the ld. counsel for the assessee after hearing the DR for the department. 11. Admittedly, the AO has made disallowances @ of 10% of the general expenses, claimed by the appellants under the heads- sale services, repairs & renovations, advertisement, printing and stationery, running and maintenance of vehicles etc., by observing that the expenses claime....