2025 (11) TMI 923

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....he order dated 19.12.2018 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ACIT, Circle 59(1), Delhi (hereinafter referred to as the Ld. AO). 2. Heard and perused the record. The appellant is a firm engaged to provide clients solutions for their staff and in the business of services sector having branch offices at Delhi, Noida and Chennai. During the year, appellant firms showed the total turnover of Rs. 26,74,40,462/-. The case of assessee was selected for scrutiny and during assessment proceedings disallowances were made on account of travelling and telephone expenses u/s 36(1)(va) of the Act. Assessee succeeded partly before CIT(A), thus is in appeal before us. 3. It is coming that the ground....

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.... expenses along with the major bills vouchers for the different months refer are there at page no. 140 to 158 of the paper book. Copy of extract telephone expenses maintained as per books of accounts are there at page no. 159 to 176 of the paper book. 6. Thought ld. DR defends the impugned additions alleging that same are disproportionate and not befitting nature of business, we find that the A.O as well as the CIT(A) has not pointed out any discrepancies in the books of accounts duly audited under the Tax audit as required under the provisions of section 44AB of the Act. The AO has not recorded any cogent reasons for making the ad-hoc disallowance of travelling & telephone expenses. The appellant has relied on the judgments of various c....