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TMI Blog2012 (7) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... sustained. Appeal dismissed. - ITA No.1817/Del/2012 - - - Dated:- 29-6-2012 - SHRI J.S. REDDY, AND SHRI CHANDRA MOHAN GARG, JJ. Appellant by: Shri Sumer Garg Respondent by: Shri B.R.R. Kumar, Sr.DR O R D E R PER CHANDRA MOHAN GARG, J.M. This appeal has been preferred by the assessee against the order of CIT(A)-XXVIII, New Delhi dated 27.3.2012 by which he partly allowed the appeal of the assessee, confirming the addition made by AO for the AY 2008-08. 2. The grounds of appeal read as under:- 1. That the ld. CIT(A) erred in law and on facts in sustaining the disallowance of Rs.35,000 out of ad hoc addition made by the AO in the facts and circumstances of the case. 2. That the ld. CIT(A) erred in law and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not properly vouched, therefore, the addition was made to avoid leakage in the revenue and the ld. CIT(A) used his discretion on proper application of his authority and extended 50% relief to the assessee. He vehemently submitted that it is the prime duty of the assessee to properly vouch the expenses which he intended to claim as deduction but he failed to do so, therefore, the action of the AO, as confirmed by the CIT(A), is correct and based on reasonable grounds. 6. We have heard both the parties and carefully considered the rival arguments and perused entire record before us. Ld. CIT(A) while dealing with ground nos. 1 to 4 observed as under:- Grounds no. 1 to 4 wherein the appellant has challenged disallowance of Rs.70000/- ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to record specific defects and particular vouchers in his assessment order. The Hon ble Delhi Court in the case of CIT v Harish Mohini Kathuria (ITA No. 679/2011) dismissed the department s appeal holding as under:- After going through the orders of the authorities below, we are of the opinion that the Tribunal rightly observed that the disallowance of a part of expenditure on account of wages as well as consumable goods was on ad hoc basis and there was no rational behind the same. The Tribunal also rightly recorded that the AO had not pointed out any specific defect in the vouchers and there was no finding that any expenditure was not found to be genuine or not relating to the business. A similar view has been taken by the Punj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not genuine, the AO could have proceeded to disallow the expenses to certain percentage but that exercise has not been done by the AO despite the various details of expenses were furnished by the assessee. Therefore, in this background, the ad hoc disallowance of 1/3rd of all the expenses is not called for. We, therefore, delete the same. The Hon ble Mumbai ITAT in the case of DCIT v M/s Epcot Securities (P) Ltd. (ITA No. 395/Mum/2009) has also similarly held that: As rightly contended on behalf of the assessee before the ld. CIT(A) as well as before us, there is nothing in the order of the AO to show as to what details and documents were exactly called for by him, which the assessee failed to furnish. There is also nothing brought o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.35,000/-. The appellant gets a relief of Rs.35,000 out of the total disallowance made under the head salaries of Rs.70000/-. Appeal on these grounds is partly allowed. 7. Admittedly, the assessee was engaged in the business of ready mix concrete and claimed Rs.3,90,105 as salaries paid to staff debiting the P L account. The AO noted that these expenses were not properly vouched and he made an addition of Rs.70,000. The ld. CIT(A) agreed to the above action of the AO but he reduced the addition to 50% to the tune of Rs.35,000. We observe that the assessee, neither before the ld. CIT(A) nor before us, submitted any explanation regarding above infirmity, as noted by authorities below, despite an opportunity to submit the same. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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