TaxTMI 
TaxTMI 
2018 (12) TMI 2019
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....t was noticed that the appeal filed by the assessee is late by 8 days. The assessee submitted that the delay occurred due to the social engagement of the authorized representative. The assessee also claimed that she does not have sufficient knowledge of income tax matters. The assessee in support of her contention filed the affidavit. Accordingly, the assessee prayed for the condonation of the delay. 4. On the other hand the Ld. DR after considering the length of delay and reasons explained by the assessee for such delay did not raise any objection if the delay is condoned. 5. We have heard the Ld. DR and perused the materials available on record. From the preceding discussion, we note that the delay in filing the appeal is just of 8 days which was suitably explained by the assessee in her affidavit. Therefore, we are inclined to condone the delay and accordingly proceed to adjudicate the issue on merit. 5.1 At the outset, it was noticed that neither anybody appeared from the side of the assessee nor any adjournment petition was filed. But we find that the assessee has filed written submissions which are placed on record. Therefore, we decided to hear the appeal of the assessee ....
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....d in law and on facts during the assessment proceeding as under. Whether act of learned AO erred in law and on facts in disallowance of expenses for the want of ledger & documentary evidence, but your honour appellant has produced as much as details & documents asked by the A.O. even though A.O has disallowed expenses on the assumption basis & percentage basis were untenable & unjustifiable. So act of disallowance of expenses amt to Rs. 888690/- by the A.O & CIT(A) has been untenable & unjustifiable. All the expenses disallowed are fully vouched. This is not the case of Id. AO that the bogus expenses have been claimed or the claim is without incurring the expenses. The only reason given by the Id. AO for disallowing the expenses is that these expenses are not required to be incurred by the appellant for its business. What expenses are to be incurred is the decision of the appellant and the Assessing Officer cannot question the wisdom of the appellant in this regard. While scrutiny proceeding appellant has already produce bank statement, ledger copy, evidence in respect of expenses & audit report, even though disallowance were not justifiable. Further your honor appellant wa....
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....ose of the business, reasonableness of the expenditure has to be judged from the point of view of the businessman and not of the Revenue. Appellant also rely on the following: (i) COMMISSIONER OF INCOME TAX vs. S.S.P. (P) LTD. HIGH COURT OF PUNJAB & HARYANA Adarsh Kumar Goel, Actg. C.J. & Ajay Kumar Mittal, J. IT Appeal No. 535 of 2010 20 July, 2011 (2011) 202 TAXMAN 386 (P&H) Legislation referred to Section 37(1), Case pertains to Asst. Year 2005-06 . Decision in favour of Assessee telephone and vehicle running and maintenance- Assessee having produced audited books of account alongwith vouchers, AO was not justified in making ad hoc disallowance of site expenses, telephone expenses and vehicle running and maintenance expenses without showing that the same were not incurred for purposes of business (Paras 11 & 12) Conclusion : Assesses having produced audited books of account alongwith vouchers, AO was not justified in making ad hoc disallowance of site expenses, telephone expenses and vehicle - running and maintenance expenses without',- showing that the same were not incurred for purposes of business. In favour of Assessee (ii) IN THE INCOME TAX APPELLATE ....
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....old that our finding given in former part of this order relating to ITA No.734/JP/2011 for the assessment year 2001-02 shall apply mutatis mutandis for the appeal relating to assessment year 2002-03 in ITA 735/JP/2011. In that view of the matter, the penalty levied by the AO and confirmed by the Id. CIT(A) is deleted." (Para -12) In the result, the appeals of the assessee are allowed. (iv) Precision Pipes And Profiles Co. ... vs Department Of Income Tax on 12 October, 2012 ITA No.4257 & 4258/D/2012 Asstt. Year: 2006-07 & 2008-09 DELHI BENCH T1 NEW DELHI In view of above, at the outset both the parties admitted that there was no disallowance by the Assessing Officer related to motor car, advertisement and sales promotion expenses in the earlier assessment year. On bare reading of the assessment order, we are inclined to observe that the Assessing Officer merely held that the personal nature of expenses under these heads cannot be ruled out, therefore, he made estimated disallowance of 10% on account of expenses incurred in this regard. The Assessing Officer has not brought any evidence or observation that the particular part of this expenditure was incurred to extend personal ....
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....ite several opportunities failed to furnish the same before the AO as well as before the Ld. CIT(A). Therefore, it was not possible to establish the genuineness of the expenses. Thus the expenses were disallowed on an ad-hoc basis by the AO which was subsequently confirmed by the Ld. CIT(A). The Ld. DR vehemently supported the order of authorities below. 10. We have heard the ld. DR and perused the materials available on record as well as written submission filed by the assessee. In the instant case, the AO has made ad-hoc disallowances of the expenses claimed in the profit and loss account by the assessee on the ground that the assessee failed to file the supporting evidence. The Ld. CIT(A) subsequently confirmed the view of the AO. 10.1 Now the controversy before us arises for our adjudication whether the ad-hoc disallowance in the given facts and circumstance is justified. In this regard, we note that the assessee is liable to pay tax on its correct income which is determined as per the provisions of the Income Tax Act. The AO to determine the correct income of the assessee has to verify the financial statements, books of accounts and supporting evidence. The initial onus lies....
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....ce of personal expenditure has been noted. Both the authorities below have gone on conjectures and surmises and the disallowance is made on probabilities. Moreover, the authorities below have also not pointed out any violation of rule 6D of the Income- tax Rules, 1962. In this view of the matter, we are in agreement with the submission of the learned counsel for the assessee that there was no justification in making such ad hoc disallowance to the extent of 1/4th of the total tour expenditure without any basis. We, therefore, direct the ITO to delete the entire disallowance." 10.4 Further, we also find support and guidance from the order of ITAT Lucknow bench in case of Asst. CIT vs. M/s Vijay Infrastructure Limited in ITA Nos.452, 35 to 37/LKW/2015 wherein it was held as under: "After considering the facts of the present case on this issue and the orders of the authorities below on this issue, we find no infirmity in the order of CIT(A) because on the basis of general observations, without pointing out even a single specific defect in the vouchers or books of accounts, ad hoc disallowance made by Assessing Officer is not justifiable and the same was rightly deleted by CIT(A)." ....