TaxTMI 
TaxTMI 
2022 (11) TMI 302
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....ities below is bad law and without proper appreciation of facts of the case. 2. Because the assessee has maintained cash book, ledger. stock register, bank statement etc. in the regular course of business. 3. Because the expenses claimed by the assessee under the head cash transaction charges Rs.56226/-, Rent solar 66000/ Running expenses of generator Rs.222810/-, Salary 480000/-. Staff welfare 86400/-, Salary Driver 54000/-, Bank commission 26385/-, Electric 30830/- totaling Rs.1142848/-is verifiable from bank statement, reasonable and are fully explained. The learned CIT(A) was not justified in upholding the addition made by ld. Assessing Officer to the extent of 12 1/2% which is highly excessive and liable to be accepted/reduced. 4. Because the expenses i.e. accounting charges 24000/-, Advertisement 29400/-,Audit fee 10000/-. E-filing expenses 3600/-Fire-extinguisher 3420/-,Insurance vehicle 24840/-,Intt.BPC 3281/-, legal fee 3000/-, Misc.exp.9150/-,Mobile expenses 5400, Printing & stationery 5014/- Repair maintenance building 30447/-, Repair & maintenance Electric 10191/-, Repair maintenance Generator 17660/-, Repair maintenance Machine 2213/-, Repair Maintenance Driwa....
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....otherwise of the daily carrying on of business and are genuine reasonable. The AO observed that despite several opportunities granted to the assessee to produce the supporting documents such as bills/vouchers etc. relating to the expenses claimed to be incurred , the assessee failed to produce the same , which led AO to disallow 25% of the sale and administrative expenses of Rs.14,79,532/- claimed to be incurred by assessee, which led to disallowance of sale and administrative expenses to the tune of Rs.3,69,883/- by AO , vide assessment order dated 12.02.2016 passed by AO u/s 143(3) of the 1961 Act. . 3.2 Further, the Assessing Officer observed that assessee has claimed household withdrawals of only at Rs.61,000/-. The assessee was asked to give details of family members and adequacy of household withdrawals. The assessee failed to submit any reply. Keeping in view status of the assessee, the modern era and cost of inflation index , the AO estimated drawings of the assessee for household expenses at Rs.20,000/- per month i.e. Rs.2,40,000/- per annum. The Assessing Officer made additions to the income of the assessee to the tune of Rs.1,79,000/- , being difference between Rs.2,40,....
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....ere duly served upon the assessee. When, this appeal was called for hearing before the Bench(SMC), on 24.8.2022, again the assessee did not enter appearance before the Bench(SMC) nor any adjournment application was filed by assessee. The Bench(SMC) decided to adjudicate this appeal on merits after considering material on record and after hearing ld. Sr. DR . 6. Ld. Sr. DR submitted that the assessee case was selected for framing scrutiny assessment. The assessee produced books of account before the Assessing Officer but could not produce any bills/vouchers for substantiating the expenses incurred by the assessee. The assessee is proprietor of M/s Sarthak Filling Station and retailer of Bharat Petroleum Corp. Ltd. and deals in petrol, diesel etc. The total turnover was Rs.11.77 crores and the GP declared was only Rs.26.71 lacs and NP declared was only Rs. 5.44 lacs. It was submitted by ld. Sr. DR that the total expenses towards sale and administrative expenses claimed by assessee were to the tune of Rs.14.79 lacs , and the Assessing Officer disallowed 25% of the said expenses. The ld. CIT(A) granted part relief to the assessee and confirmed disallowance of aforesaid expenses to the....
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....d to prove that expenses were incurred genuinely for business purposes. . The total sales and administrative expenses claimed to have been incurred by the assesse were to the tune of Rs.14,79,532/- and since the assessee did not produce any bills/vouchers for expenses, the authenticity and genuineness of these expenses being incurred wholly and exclusively for the purposes of business could not be substantiated. The Assessing Officer disallowed 25% of these expenses which led to disallowance of Rs. 3,69,883/-. I have observed that the assessee produced copies of ledger accounts of these expenses , but the assessee could not produce any bills/vouchers for these expenses to substantiate that these expenses were incurred genuinely by assessee wholly and exclusively for the purposes of the business of the assessee, however, ld. CIT(A) granted part relief to the assessee and restricted additions towards disallowance of expenses to the tune of Rs.1,84,941/- being 12 ½ of the sale and administrative expenses as against disallowance of 25% made by AO, thus substantial relief is already granted by ld. CIT(A). Before me none appeared on behalf of the assessee and I have carefully peru....
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.... on record which could justify further relief. I do not find any merit in the appeal filed by assessee before tribunal on this issue , which now stand dismissed. This disposes of ground number 2 to 4 raised by assessee, which stand dismissed. I order accordingly. 7.2. On the second issue, I have observed that the assessee has claimed drawings for household expenses to the tune of Rs.61,000/- for the entire year under consideration. The assessee is owner of M/s Sarthak Filling Station and retailer of Bharat Petroleum Corp. Ltd. , and deals in petrol diesel etc. during the year under consideration . The assessee has substantial sale of Rs.11.77 crores. The total drawings for household expenses claimed by assessee were to the tune of meager amount of Rs.61,000/- for the whole year. The assessee did not produce before AO any details such as composition of family member and adequacy of drawings . The Assessing Officer estimated household drawing expenses of Rs.20,000/- per month. Keeping in view, that assessee lives in village in ancestral house and is unmarried, ld. CIT(A) gave part relief wherein drawings for household expenses were estimated by ld. CIT(A) to the tune of Rs. 10,000/-....