TaxTMI 
TaxTMI 
2024 (9) TMI 1949
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....ion of Rs. 5 lakhs from the claim of shortage and leakage expenses claimed by the appellant company. (d) The Ld. AO made certain adjustments relating to deduction u/s. 80HHC of the Income Tax Act (the Act for short) and restricted the claim of deduction. (e) The Ld. AO made certain adjustments relating to deduction claimed by the appellant company under section 80IA of the Act as the appellant company did not furnish quantity-wise details of packing material. 2. The learned Commissioner of Income Tax (the Ld. CIT(A) for short) gave detailed reasoning and deleted the additions made by the Ld. AO on the above issues. 3. Aggrieved by the deletion of the Ld. CIT(A), the Revenue filed an appeal before the ITAT, Mumbai and all the grounds o....
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....wn case vide ITA No. 2800/Mum/20223 for the proposition that similar adhoc disallowance of Staff expenses in A.Y. 1998-99 was deleted by the Tribunal. 4.5) After hearing both sides, the Bench decides that there is no merit in the arguments of Ld. DR and also there are no valid arguments for the Revenue for making such adhoc disallowance. Hence, the Revenue's appeal on this ground is dismissed. 5. Ground No. 2 : Adhoc disallowance of miscellaneous expenses : 5.1) The Ld. AO made 1/5th of the miscellaneous expenses claimed by the appellant company on adhoc basis. Before the Ld. CIT(A), appellant company has said that these expenses actually comprises of advances given to the parties and unrealsed cheques which were effectively writte....
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.... the said expenditure is natural incident of business carrying on by the appellant company and there is proper check on this expenses as the debit note based on such expenses was booked and raised by the appellant's distributors which in turn would be accepted by the appellant company only after its marketing executive is satisfied with such vouchers. 6.3) After hearing both sides it is decided that the Ld. AO cannot make an adhoc addition without any evidence when all the details were furnished and accounts of the company were audited and hence addition made by the Ld. AO is deleted. The Revenue's appeal is dismissed on this ground. 7. Ground No. 4 : Exclusion of sales tax etc. from total turnover for the purpose of computation of de....
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.... unit on actual basis and reallocation of Kanjikode unit to Goa unit is not required. The Ld. CIT(A) held that emphasis was laid down on the fact that SKU used in different units for different composition. The Ld. CIT(A) held that the Ld. AO cannot reallocate expenditure towards packing material from one unit to another without any basis and only to restrict the deduction u/s. 80IA of the Act. As there is no basis for making any addition, restriction of deduction claimed by the appellant company is incorrect. 8.2) There were no fresh submissions by the Ld. DR before the Bench on this particular issue and Ld. DR relied on the order of the Ld. AO. 8.3) Ld. AR of the appellant has submitted during the course of hearing before the Bench t....