TaxTMI 
TaxTMI 
2024 (10) TMI 643
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....essment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 28.12.2017 by the Assessing Officer, ACIT, Central Circle-16, New Delhi (hereinafter referred to as 'ld. AO'). 2. The first issue to be decided in this appeal is as to whether the ld CIT(A) was justified in upholding the ad hoc disallowance of 10% out of repairs and maintenance expenses of plant and machinery, travelling and conveyance expenses, telephone expenses, repairs and maintenance of vehicles and security service charges, in the facts and circumstances of the instant case. The interconnected issue involved therein is whether the ld CIT(A) was justified in enhancing the income of Rs.4,96,84,717/- on account of reimbursement of expenses....
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....17 had submitted copies of the ledger accounts of major expenses by stating that all the accounts have not been submitted considering the volume involved therein. The assessee before the ld CIT(A) submitted that on security service charges, the assessee had even deducted tax at source and a sum of Rs.2,15,47,678/- had been already allowed u/s 40(a)(ia) of the Act by the assessee for non-deposit of TDS before due date of filing of return. It was further submitted that the travelling and conveyance expenses of Rs.5.55 crores include a sum of Rs.4.96 crores being head office expenses incurred at Oman Branch by the assessee. These expenses were included in the travelling and conveyance related to Oman Branch, however, in head office books, diff....
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.... the travelling and conveyance expenses of Rs. 5.5 crores and that this sum of Rs.4.96 crores is head office expenditure debited by Oman Branch of the assessee company and in Head office books, the same had been credited in different expenditure against which reimbursement was taken from Oman Branch. Hence, it was specifically clarified that this sum of Rs.4,96,84,717/- was neither claimed as expenditure nor shown as income as it got knocked off in the consolidated accounts of head office and Oman branch. The said certificate also contain that all the expenses reflected in the books of accounts were incurred only for the purpose of business of the assessee company and are supported with documentary evidences thereon. 5. The ld CIT(A) agree....
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....nces of expenditure, it is a fact that assessee had agreed for 10% disallowance of expenses in the assessment proceedings due to paucity of time for furnishing all details before the ld AO. Admittedly, the ld AO had sought for other details only on 26.12.2017. The assessment finally stood completed ion 28.12.2017. It is a fact that the assessee work sites are located at 20 locations and spread over all over the country and also in abroad. Hence, it would be practically impossible to collect all the details and submitted the same before the ld AO within 2 days and assessee further collected the details and submitted the same to the extent of 80% of the expenditure before the ld CIT(A) in the form of additional evidences. The ld CIT(A) had no....