2022 (12) TMI 162

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....19, the order passed u/s 250(6) of the IT Act 1961, [in brevity the Act] for A.Y.2015-16. The impugned order was originated from the order of the ld. ITO (Exemption), Ward, Amritsar, (in brevity the AO) order passed u/s 143(3) of the Act date of order 30.11.2017. 2. The grounds of the assessee is extracted as follows: "1. That on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in upholding the disallowance of Rs. 146100/- at the rate of 10% out of total salary of Rs. 1461000/- when EPF was also deducted from salary of the staff. 2. That on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in making disallowance at Rs. 293100/- at the rate of 10% of....

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....ssee is an educational institution& also running the school during the year of appeal. The total receipts in income and expenditure account of the assesseefor F.Y. 2014-15 was Rs.1,01,37,729/-. The assessee further argued that the amount of "van rent" Rs.1973628/- be deducted from turnover so the total turnover will come below the one crore. Accordingly, the assessee can able to avail the benefit u/s 10(23C)(iiiad) of the Act. The contra entry of 'van rent' would be deducted from both the side of I & E Account. The addition was made by the ld. AO in different heads related expenses including the "van rent". Aggrieved assessee filed an appeal before the ld. CIT(A). The ld. CIT(A) granted the relief related to addition of Rs.30,000/- paid to ....

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....id. But without verifying the proper documents, the addition was made. The ld. Counsel has relied on the order of Coordinate Bench, ITAT, Amritsar in the case of Vijay Kumar Grover vs. ITO, ITA No. 276/Asr/2018, order dated 16.06.2022 and Ajay Kumar Grover vs. ITO, ITA No.277 & 300/Asr/2018, date of order 16.06.2022. We find that the ld. AO had purely made addition by making ad hoc disallowance out of expenditure @ 10%. The ld. AO had not specified the specific lacuna related disallowance of expenditure. The ld CIT-DR was not able to point out any contrary view in relation to submission of ld Counsel. Hence, the ld.AO is hereby directed to delete this disallowance made amount to Rs.146100/- and 293100/-. 6. The ld. Counsel further argued....