TaxTMI 
TaxTMI 
2025 (6) TMI 1137
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....12/- ignoring the fact that in absence of party wise details and bills of expenses, applicability of section 40A(3) of the I.T. Act could not be known. 3. That, in facts and circumstances of the case, Ld. CIT(A) erred in deleting addition of Rs. 20,233/- ignoring the fact no evidences have been filed by the assessee in support of the claim that all these domestic travel expenses were incurred for wholly & exclusively for business purpose within applicability of section 37 4. That, in facts and circumstances of the case, Ld. CIT(A) erred in deleting addition of Rs. 1,90,15,785/- ignoring the fact that registered deed for said property is stating nature of land being agricultural and assessee's contention of farm house was found to be incorrect & wrong as per Inspector's report 5. The assessee craves, leave to add, alter or amend any of the grounds of appeal before or during the course of hearing of the appeal." 3. Heard and perused the records. Ground No.1; In regard to this ground it can be observed that the assessee has shown agricultural income of Rs. 7,25,300/- which has been claimed as exempt from tax. The AO has asked the assessee to furnish complete details of agricult....
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....of land. The assessee has filed the two copies of Form J issued by M/s Dhingra Bros., for which there is no allegation, on basis of enquiry that same is not genuine. The emphasis on proving the same by purchase of seeds, electricity expenses, etc., is stretching too far the scope of inquiry and doubting the income. More so, when in the proceeding years as well as in subsequent years the agricultural income from the same land was accepted. The findings of the CIT(A) require no interference. The ground has no substance. 4. Ground No. 2: The assessee has debited finishing charges of Rs. 1.56 Crore in profit and loss account which includes sampling expenses of Rs. 16,76,824/-. The AO has asked the assessee to furnish detail of these expenses with necessary evidences and details of TDS on these expenses. It is observed by the AO that assessee has made most of the payments in cash with no detail of nature of expenses or supplier details on ledger account. The assessee failed to furnish evidences that these expenses were incurred wholly for the purpose of business therefore AO has disallowed 50% of these expenses i.e. Rs. 8,38,412/- and added it to the taxable income of the assessee. The....
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....e ld.CIT(A) has taken a reasonable call on the basis of evidences that the expenditure commensurate with the nature of work. Sampling expenses were required for procurement of the orders with regard to different households and furnishing articles manufactured by the assessee. Thus, sampling work is of the nature which is recurring and got done on urgent basis. Therefore, ad hoc disallowance in such circumstances were not justified. The findings of the ld.CIT(A) require no interference. The ground has no substance. 7. The ground No.3: The assessee has claimed the staff welfare expenses at Rs. 1,63,578/-, business promotion expenses at Rs. 1,76,691/- and telephone expenses at Rs. 2,58,903/- totaling to Rs. 5,99,172/-. The AO has asked the assessee to furnish the detail of expenses and justify that expenses were incurred wholly and exclusively for the purpose of business activities. It is observed by the AO that staff welfare expenses were incurred on tea snacks, lunch, dinner etc. which have been claimed for business purposes. The business promotion expenses were incurred for various kind of gifts item and no evidence was filed by the assessee. For telephone expenses assessee has no....
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....ated 09.03.2015. Kindly note that the assessee has provided all the documents and details as & when required by the assessing officer and nothing was rejected. The assessing officer does not contend the genuineness of the books of accounts or the expenses incurred. The assessing officer did not point out even a single rupee as disputed amount or entry. None of the balances or entries was highlighted as disputed or unacceptable. The learned assessing officer has not pointed out a single expense in the books of accounts which could be treated as expenditure which is non-business in nature. In fact all the bills/vouchers related to Staff welfare & business promotion had been produced in original in front of the assessing officer on 09.03.2015& nothing was rejected. If the assessing officer wished for more information or documents, he should have communicated it to the client. The assessing officer was provided all that he asked for. Hence the contention that expenses are not wholly & exclusively for the purpose of business is completely baseless & ill-founded. The assessing officer's adhoc addition without pointing out specific particulars not eligible for deduction, is bad ....
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....equire frequent travelling. No defect in the books and vouchers have been pointed out nor they are doubted to be not genuine. Thus, the findings of the ld.CIT(A) require no interference qua the deletion made. 9. Ground no. 4; We find that during the year assessee has shown capital gain of Rs. 1,90,15,785/- and claimed deduction amounting to Rs. 1,90,15,785/- u/s 54 and 54F of the Act. It is observed by the AO that assessee has purchased a property of total land 17 Kanal 7 Marla situated in the revenue state of village Balola Tehsil Sohna Distt. Gurgaon for which assessee claimed deduction u/s 54 that the above property is actually agricultural land. The AO has reproduced the last para of page 2 of the purchase deed and third para of page 3 of the purchase deed and observed that from the sale deed it is ample clear that total agricultural land measuring 2 acre 1 kanal and 7 marla was purchased by the assessee and in no way such a large portion of agricultural land can be used for residential property. Thus AO held that the deduction claimed u/s 54 and 54F being residential property claimed by the assessee is not allowable as the same is actually agricultural land for which assessee....
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.... not only consist of large portion of land but is also a dwelling unit consisting of 2 rooms for residence & a washroom along with electricity, water connection & other basic amenities. Ld. CIT(A) concluded as follows; 9.5 It is seen that in view of the provisions of Section 2(14)(iii) of the IT Act 1951, the said land is clearly not an agricultural land. Further in the case of assessee remand report is called for after verifying the contention of the assessee that property as per the certificate of Tehsildar is at a distance of 2 kilometer from the Municipal limits of Gurgaon and consists of 2 rooms and one bathroom. The remand report is submitted by the AO vide letter dated 01.05.2018 in which AO has reported that Shri Vikas Dahiya, ITI, visited Khewat No. 273, Khatauni No. 283 Rect. No. 13 Kila No. 21/1 (2-10) Rect. No. 14, Kila No. 25(8-0) Rect. No. 15 Kila No. 5/1 (4-11) Rect. No. 16 Kila No. 1/1/1 (2-6) field 4 total land 17 Kanal 7 Marla situated in the revenue estate of Village Balola Tehsil Sohna Distt Gurgaon (the Property) & found out that there was no Farm House on the said property. At the same time he also observed that there were 2 rooms for residence & a washroom ....