2013 (5) TMI 1080

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....a the assessee-respondent on merits after hearing the learned DR. 3. The ground no.1 of the Revenue's appeal is as under: "1. The ld.CIT(A) has erred in law and on facts in restricting the addition of Rs.50,000/- as against the addition made at Rs.4,26,053/- out of staff welfare expenses and traveling expenses." 4. The learned DR relined on the order of the AO. He submitted that the expenses under the head staff welfare expenses and travelling expenses were not fully supported by the vouchers, and therefore disallowance made was justified. 5. We have considered submissions of the learned DR and perused the orders of the AO and the CIT(A). We find that the submissions of the assessee has been reproduced by the CIT(A) in the....

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.... that the payments were made through self-made vouchers which could not be relied totally and it is not possible for the department to verify the genuineness of the expenses looking to the voluminous transactions and voluminous number of vouchers. The AO has further observed that there has been no credit in this account for sale of discarded tyres. We find that the CIT(A) has recorded his finding that the AO has not pointed out specific item of expenses for disallowance out of truck maintenance expenses. The CIT(A) has further recorded that the assessee in its submissions has pointed out that sale of tyres, empty bags etc. were accounted for in its books. The assessee's books of accounts are subject to audit and the auditors have not made a....