9911796707
TMI Blog2013 (11) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... and the extent of expenditure claimed by the assessee, no trading addition in the GP rate is sustainable, and according, the same is deleted, and disallowance out of expenses is made at Rs.3,50,000/- (Three Lakhs Fifty Thousand Only), on account of self-made vouchers with regard to certain amount of expenses claimed by the assessee in trading results of the assessee – Decided in favor of Assessee. - ITA No.2535/Ahd/2010, ITA No.2678/Ahd/2010 - - - Dated:- 5-9-2013 - Shri G. C. Gupta And Anil Chaturvedi,JJ. For the Petitioner : Shri Vartik Chokshi For the Respondent : Shri J. P. Jangid, Sr. DR ORDER Per G. C. Gupta, Vice-President: These are cross- appeals by the assessee and the Revenue for the assessment year 2007-2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e referred to the relevant papers in the compilation filed by the assessee wherein there is a substantial increase in various heads of expenses, resulting in lesser GP declared by the assessee. He submitted that in freight (outward) increase was 98.97%, freight (inward) increase was 51.93%, electricity bill increased by 120.36% and machinery repair maintenance, increase by 70.92%, power and fuel expenses increased by 67.99% and likewise, increase in other heads of expenses also. He submitted that there is increase of 68.43% in sales, and it was achieved only due to policy of the assessee to sell the goods at competitive rates only. He submitted that the accounts of the assessee were audited by the Chartered Accountant, and no mistake coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been upheld by the CIT(A) also. We find that merely because certain vouchers of expenses were only self-made vouchers, having signatures of the recipient therein, does not justify the rejection of the books of accounts maintained in the regular course of business by the assessee. No other defects could be pointed out by the department with regard to the maintenance of the accounts of the assessee. The proper course in such facts of the case of assessee for the AO is to make a suitable disallowance out of the expenses, which were not supported by proper vouchers and were supported only by self-made vouchers. We find that no such exercise was undertaken by the AO or the CIT(A). The AO has not even quantified the extent of such expenses whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the assessee are partly allowed. ITA No.2678/Ahd/2010 - Asstt.Year : 2007-2008 (Revenue's appeal) 7. The only ground raised in this appeal of the Revenue is as under: "1. The ld.CIT(A) has erred in law and on facts in estimating the GP @ 17.5% instead of 19.16% as estimated by the AO." 8. Both the parties before us submitted that issue in this ground of the appeal of the Revenue is inter-linked with the issue raised in the ground of the appeal of the assessee for the same assessment year i.e. 2007-2008. We have considered rival submissions. In view of our decision while disposing of the assessee's appeal for the same assessment year 2007-2008 in ITA No.2535/Ahd/2010 for A.Y.2007- 2008 in the foregoing paras of this order, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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