9911796707
|
Home
Issues involved: Appeal against adhoc disallowance made by AO u/s 143(2) and 142(1) for business promotion expenses, traveling & conveyance expenses, and staff welfare expenses for the assessment year 2005-06.
Business Promotion Expenses: The AO disallowed Rs. 4,17,130 out of total claimed amount of Rs. 1,86,25,177 as it was not fully verifiable due to lack of supporting vouchers. The CIT(A) confirmed the disallowance without considering the past history or specific deficiencies pointed out by the AO. The Tribunal held that since no specific defects were pointed out by the AO and the books of accounts were found to be in order, the issue was restored back to the AO for a speaking order after confronting the assessee with specific objections noted. Traveling & Conveyance Expenses: A sum of Rs. 2,32,100 out of total claimed amount of Rs. 84,82,244 was disallowed by the AO due to non-availability of supporting vouchers. The CIT(A) upheld the disallowance without specifying any specific deficiencies. The Tribunal found that the AO did not point out any specific defects and hence set aside the order, directing the AO to give a reasonable opportunity of being heard to the assessee. Staff Welfare Expenses: The AO disallowed Rs. 1,42,600 out of total claimed amount of Rs. 36,99,979 as it was not fully verifiable without supporting vouchers. The CIT(A) confirmed the disallowance based on a general reply from the assessee. The Tribunal held that without specific deficiencies being pointed out by the AO, the action of the CIT(A) could not be upheld, and hence the issue was restored back to the AO for a speaking order after providing the assessee with a reasonable opportunity of being heard. Conclusion: The Tribunal allowed the appeal of the assessee for statistical purposes and directed the AO to re-examine the issues by providing specific objections to the assessee and deciding the matter in accordance with law.
|
