2022 (12) TMI 930

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.... for A.Y. 2008-09. The impugned order was emanated from the order of Ld. Addl. Commissioner of Income Tax, Range-III, Jalandhar, date of order 29.12.2010. 2. The present appeal has been listed for hearing before us pursuant to order dated 28/07/2022, passed by the same bench of the Tribunal under section 254(2) of the Act, in MA No. 37/Asr/2019 in ITA No. 479/Asr/2016, whereby earlier order dated 21/05/2019, passed under section 254(1) of the Act was rectified & was recalled. The appeal was directed to be listed for hearing in that regard. When the appeal was called for hearing, no one appeared on behalf of assessee to represent his case. There is only application for seeking adjournment. But the reason of adjournment was not viable. ....

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....nufacturing of Auto Parts and filed its return of income of Rs. 4,59,64,610/- on dated 30.09.2008. The assessment was completed u/s. 143(3) of the Act on dated 29.12.2020 and assessed income of Rs. 4,82,47,915/-. The addition was made in different heads. The assessee challenged the order of the Ld. AO before the 1st Appellate Authority. After the appeal order the addition of Rs. 10,60,266/- is sustained. The details of additions are as follows:- a. Foreign Currency & Credit Card Expenses. Rs. 530,133/- b. Staff Welfare Expenses and Gift & Shagun Expenses Rs. 400,000/- c. Disallowance of Building Depreciation Rs. 79,386/- 4. Being aggrieved assessee filed an appeal before us. 5. We consider the order of the L....

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....ncurred through credit card have not been produced by the assessee. It means, some disallowance out of foreign travel expenses will be justified. I am also of the opinion that the disallowance made by the Assessing Officer is not on ad-hoc basis but she has pointed out specific defects in the maintenance of bills and vouchers for the utilization of foreign currency and in respect of the expenses incurred through credit cards. However, keeping in view various decisions of the Honorable Jurisdictional ITAT on the subject whereby 10% disallowance out of foreign currency expenses has been held to be justified, I am of the opinion that the disallowance made by the Assessing Officer is quite excessive looking to overall facts of the case. I am fu....

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....ing Officer made disallowance of Rs. 25,000 out of various expenses debited to profit & loss account. According to him certain miscellaneous expenses were un-vouched. Such un-vouched expenses were mostly under the head conveyance. The CIT(A) reached the conclusion that the total of un-vouched expenses would not possibly come to Rs. 25,000. He, therefore, restricted the disallowance to Rs. 15,000." 12. Learned Representatives of the parties are heard on this issue. 13. It is apparent that the Tax Authorities below did not realise the practical difficulty of a businessman that it is not possible to obtain receipts from each and every taxi-driver for utilization of the conveyance. There are certain expenses for which vouchers....