2023 (7) TMI 674

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n law, the Learned CIT(A) both on facts and in law has erred in upholding the action of the Learned AO of making an ad-hoc disallowance of various revenue expenses to the extent of INR 92,56,638, being 10% of the revenue expenses incurred by the Appellant, wholly and exclusively for the purpose of carrying out its business, allowable under section 37 of the Act. 2.1. On the facts, and in the circumstances of the case, and in law, the Learned CIT(A) has erred in upholding the additions of ad hoc disallowance of expenses by disregarding the documentary evidences filed by the Appellant during the course of assessment proceedings. 22. On the facts, and in the circumstances of the case, and in law, the Learned CIT(A) has erred in confirming the addition amounting to INR 92,56,638, without considering the submission made by Appellant and without appreciating the fact that the same were incurred during the course of business. 2.3. On the facts, and in the circumstances of the case, and in law, the Learned CIT(A) has grossly erred in confirming the action of the Learned AO, which is based on mere surmises and conjecture and has been made ignoring the audited book....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee on 30.11.2015. The case of the assessee was selected for scrutiny assessment under CASS. Accordingly, a notice u/s 143(2) of the Income Tax Act, 1961 ("the Act") was issued and duly served upon the assessee. In response to the statutory notice, Ld.AR for the assessee attended the assessment proceedings and filed the details as called for by the assessing authority. The Assessing Officer ("AO") during the course of assessment proceedings, noticed that the assessee had claimed certain expenses amounting to Rs. 9,25,66,376/-. However, as per the AO, the assessee could not furnish the supporting bills for large number of items and claimed that they were reimbursements made to their overseas sister concerns for proportionate expenses incurred on behalf of the assessee company. Therefore, the assessing authority considering the material available on record in its wisdom, disallowed 10% of such expenses and made addition of Rs. 92,56,638/-. Further, the AO noticed that in the P& L Account, under Finance Costs (Note 23), a sum of Rs. 12,83,577/- on account of interest on delayed payment of statutory dues is recorded. After giving opportunity to the assessee, the AO made additio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....T(A) on sample basis. The Appellant humbly submits that the above-mentioned additional evidence could not be furnished before the lower authorities earlier as the said documents were not readily available with the Appellant and only after putting lot of efforts in retrieving these old documents the Appellant was able to find the same. In view of the above, the Appellant submits that for effective disposal of the appeal, it is respectfully prayed that the aforesaid documents may kindly be admitted as additional evidence by exercising the discretion conferred on this Hon'ble Tribunal under Rule 29 of the ITAT Rules and taking into consideration while adjudicating the appeal. Further, it is humbly submitted that the Hon'ble jurisdictional bench of the ITAT in the case of UOP LLC vs Additional Director of Income-tax, International Tax: (2007) 108 ITD 186 (Del) had laid down inter- alia the following principles as regards admissibility of additional evidence: • Evidence which is not only helpful but also relevant to decide the issue shall be adduced by the Appellate Tribunal. • Where evidence proposed to be filed was not avail....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....levant contents of the impugned order are extracted herein below:- Discussion & Decision "The facts of the case, the submission of the AR and the finding of the AO were examined at length. The AR of the appellant contended that interest on late payment of TDS as well as write off of Cenavt credit was disallowed by the AO. The AR further contended that interest on late payment of TDS of Rs 18,929/- was disallowed. In this regard the AR stated as under: The Appellant submitted that interest on late payment of TDS amounting to INR 18,929 has already been disallowed by the Appellant in the COI of the subject AY. The AO is directed to examine the veracity of the claim of the appellant and allow it if found to be correct. Regarding the disallowance of the cenvat credit, the AR of the appellant submitted that the cenvat credit was not in the nature of a penalty and had been wrongly reflected under interest on delayed payment of statutory dues' heads. The submission of the AR is as under: With respect to reversal of cenvat credit amounting to INR 12,64,648, the Appellant duly submitted that the said amount is in the nature ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of assessment, he may confirm, reduce, enhance or annul the assessment; (b) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty; (c) in any other case, he may pass such orders in the appeal as he thinks fit.] (2) The [Joint Commissioner (Appeals) or the] Commissioner (Appeals) [,as the case may be,] shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has had a reasonable opportunity of showing cause against such enhancement or reduction. Explanation.-In disposing of an appeal, the [Joint Commissioner (Appeals) or the] Commissioner (Appeals), may consider and decide any matter arising out of the proceedings in which the order appealed against was passed, notwithstanding that such matter was not raised before the [Joint Commissioner (Appeals) or the] Commissioner (Appeals) [, as the case may be,] by the appellant." 14.1. It is clear from plain reading of the above provision of law that Ld.CIT(A) in case of appeal against an order of assessment, he may confirm, reduce or annul the assessment. However, in the ....