TaxTMI 
TaxTMI 
2022 (9) TMI 691
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....rties in Open Court through physical hearing mode. 2. The grounds of appeal raised by the assesseein memo of appeal filed with Income Tax Appellate Tribunal, Varanasi (hereinafter called " the tribunal") , reads as under : "1. Because the "CIT(A)" has erred in law and on facts in sustaining a part of disallowance made by the Assessing Officer in-spite of open facts and various judgments in favour of the appellant. 2. BECAUSE the 'Authorities' below have erred in law and on facts in making/sustaining adhoc disallowances aggregating Rs. 6,00,000/- , out of expenses claimed under various heads , as per break up given hereunder:- S.No. Head of Expenses Amount Disallowed (Rs.) 1. Conveyance 4,76,000/- 2. Transportation 14,29,270/- 3. Tour and Travelling Campus 55,50,360/- 4. Tour and Travelling Card 36,74,758/- 5. Tour and Travel Reimbursement 77,85,032/- 6. Tour and Travelling Expenses 98,811/- Total 1,90,14,831/- 3.BECAUSE the "CIT(A) on a due consideration of the facts and circumstances of the case, particularly that a) The appellant has kept and maintained books of accounts in regular course, wherein no infirmity or irregularity....
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....whereas the expenses on account of traveling and expenses have increased manifold. The assessee was asked by the AO to file details of traveling expenses claimed in profit and loss account. The assessee filed before the AO, details of traveling and conveyance expenses claimed , as under: S.No. Head of Expenses Amount Disallowed (Rs.) 1. Conveyance 4,76,000/- 2. Transportation 14,29,270/- 3. Tour and Travelling Campus 55,50,360/- 4. Tour and Travelling Card 36,74,758/- 5. Tour and Travel Reimbursement 77,85,032/- 6. Tour and Travelling Expenses 98,811/- Total 1,90,14,831/- Since, the assessee has claimed expenses manifold in this year vis-à-vis the year under consideration, the AO asked assessee to file complete details with justification of expenses. The AO asked for the details of these expenses vide notice issued u/s 142(1) of the 1961 Act. The AO observed that the assessee has reimbursed the tour and travel expenses incurred by Directors and other employees through credit card. The assessee was asked by the AO to file supporting evidences in respect of these expenses, but despite repeated opportunities granted by the AO , the a....
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....he AO has not specified as to which expenses could not be verified on account of self-made vouchers. Not even as single bill/voucher has been identified by the AO in this regard. The AO has not identified the specific bills/vouchers which could not be verified. It has been held to various judgments that the disallowance made purely on adhoc basis and without specifying any particular defect in the books of account is unwarranted. In the present case also the AO has disallowed expenses without pin pointing any specific defect in the bill/voucher produced.However , looking at the fact and circumstances of the case and the facts that the AO has brought into light the fact that payment has been made by them by credit card and the appellant has not filed details regarding the same, I find the addition made by the AO on a higher side and total addition of Rs. 6,00,000/- would be fair and judicious in this case. The addition made by the AO is upheld upto extent of Rs. 6,00,000/- . The appellant gets consequential relief. 6. In the result the appeal is partly allowed." 5.Still aggrieved by the appellate order passed by ld. CIT(A), the assessee has filed second appeal with tribunal. ....
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....ted reported in (2016) 382 ITR 0152(All. HC) and prayers were made to uphold the decision of ld. CIT(A). 6.We have considered rival contentions and perused the material on record. The brief facts of the case are that the assessee is engaged in the business of recruitment of Professional Manpower for other companies. The assessee filed its e-return of income, on 29.11.2014 , for ay: 2014-15, declaring income of Rs. 2,28,24,900/- . The case of the assessee was selected by Revenue for framing scrutiny assessment u/s 143(2) read with Section 143(3)of the 1961 Act, which culminated into an assessment order dated 28.12.2016 passed by the AO u/s 143(3)(ii) of the 1961 Act, wherein income of the assessee was assessed at Rs.2,39,32,320/- . The solitary issue in this appeal is with respect to the disallowance of traveling and conveyance expenses to the tune of Rs. 10,00,000/- by the AO, which disallowance was later reduced to Rs. 6,00,000/- by ld. CIT(A) in the first appellate proceedings. The assessee has claimed total travel and conveyance expenses to the tune of Rs. 1,90,14,831/- during the year under consideration , as against Rs. 1,20,24,307/- in the immediately preceding year, and suc....
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....tails are also filed before us substantiating these expenses and justifying that these expenses were incurred wholly and exclusively for the purposes of the business. The assessee is not able to rebut the concurrent finding of the both the authorities below. Thus, we hold that the assessee failed to discharge primary onus , as is cast under the provisions of the 1961 Act. The assessee has not filed any details before the AO except ledger account of these expenses. Thus, it cannot be said that these expenses were incurred wholly and exclusively for the purposes of business of the assessee , and incurring of these expenses for personal usage cannot be ruled out. Now, coming to the contentions of the assessee that no adhoc disallowance can be made, reference is drawn to the judgment and order of Hon'ble Allahabad High Court in the case of Pr. CIT v. RimjhimIspat Limited (supra), wherein the Hon'ble Allahabad High Court held as under: "7. Having heard the learned counsel for the parties, we find that there is an express finding given by the Assessing Authority as well as by the Ist Appellate Authority with regard to non-production of bills and vouchers and for not maintaining the sto....