TaxTMI 
TaxTMI 
2023 (5) TMI 1112
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...., Delhi/ (CIT(A), Mumbai [hereinafter referred to as the 'ld CIT(A)'] qua the assessment year 2019-20 on the grounds inter-alia that :- "1. Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) was justified in allowing the assessee's claim and directing the AO to assessee the profit of the company @ 3% of the shown receipts of Rs. 3,76,96,024/- which works out to Rs. 11,30,880/-." 2. Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) was justified in directing the AO to verify the matter and allow further relief as same is found admissible as per provisions of Income Tax Law while giving effect to CIT(A)'s order and reduced the impugned addit....
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....tion it is noticed that the assessee has incurred expenses to the tune of Rs. 3,46,23,716/- and Rs. 25,63,913/- (Rs. 3,71,87,629/-) on account of operational cost and administrative expenses respectively. On failure of the assessee to produce bank statement reflecting that the expenses were incurred by assessee, the expenses remained unexplained and thereby disallowed by the AO u/s 37(1) of the Act to the tune of Rs. 3,71,87,629/-. 3. The revenue carried the matter before the Ld. CIT(A) by way of filing appeal who has partly allowed the same for statistical purposes. Feeling aggrieved with the impugned order passed by the Ld. CIT(A) the revenue has come up before the Tribunal by way of present appeal. 4. The assessee has not preferred....
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....reasons." Without cogent reasoning, no disallowance on ad-hoc basis could be sustained. It was also submitted by the Ld. A/R of the appellant company and is acceptable and well settled that in many such cases, "if AO not satisfied with details submitted by assessee, they always disallow some % of the expenses by keeping in mind that the assessee generate revenue (sale) also, in our case the Ld. AO disallowed entire expenses which is not a natural Justice with the appellant." 5.1.4 Further, it was not the case of the Ld. A.O, that the expenses incurred had not been used by the appellant company for generating receipts which was duly accepted by the A.O. and not disputed by him. It was correctly argued that it is not possible for the....
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....tted that the net profit ratio in the year consideration was abysmally low to the extent of 0.15% where as in the earlier years from F.Y. 2008-09 to F.Y. 2010-11 it was 2.27%, 3.85% and 3.26% respectively. It will be in fitness of things and in interest of 'Justice' & ' Fair Play' the profit of the company is directed to be assessed at the rate of 3% of the shown receipts of Rs. 3,76,96,024.This is worked out to Rs. 11,30,880. 5.1.6 Since this is a matter of verification, the Ld. AO is directed to do the same and allow further relief as the same is found admissible, as per provisions of Income Tax Law, while giving effect to this appeal order and reduced the impugned addition from Rs. 3,71,87,629 to Rs, 11,30,880. T....