2026 (1) TMI 587

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....aised following grounds of appeal: 1) The Order of the CIT(Appeals) is against facts, law and circumstances of the case. 2) The CIT(Appeals) has erred in confirming the disallowance made by the Assessing Officer in the facts and circumstances of the case. 3) The CIT(Appeals) ought to have found that the disallowance of 20% of the expense is purely adhoc, estimated and based on surmises and conjectures and hence the same should have been deleted. 4) The CIT(Appeals) should have found that the Assessing Officer has not pointed out any specific instance of discrepancy in the vouchers produced by the Appellant in support of the claim of expenditure and such being the case, the disallowance is invalid and ough....

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....s of the view that assessee is not interested in pursuing/prosecuting the appeal. Further on merits also the ld. Addl/JCIT(A) held that as the assessee had failed to file any submissions and documentary evidences to controvert the findings of the AO & therefore he did not find any reason to interfere with the decision of the AO and accordingly, the disallowance was sustained. 6. Aggrieved by the order of the ld. Addl/JCIT(A), the assessee has preferred an appeal before this tribunal. 7. Before us, the ld. AR of the assessee submitted that the disallowance of 20% of expenses is purely adhoc, estimated and based on surmises and conjectures. Further, the ld. AR also submitted that the AO has not pointed out any specific instance of discr....

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.... the self made vouchers were produced in respect of loading and unloading expenses. Further we are also of the view that the AO has not brought material on record of any specific instance of discrepancy in the vouchers produced by the assessee in support of the claim of expenditure. We are of the considered opinion that suspicion however strong cannot take the place of proof. Further we are also of the opinion that the AO has not given any basis of considering 20% for disallowing on adhoc basis. 9.1 In view of the above facts and discussion the ad-hoc disallowance made by the AO out of loading & unloading expenses is held to be made on presumption only. The AO has made this disallowance based on general observation without pointing out a....