9911796707
TMI Blog2013 (12) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... in conveyance bill or vouchers – The adhoc disallowance was not properly justified by him – Decided in favour of assessee. Addition of office expenses – Held that:- The self-made vouchers should also be accepted – It is not possible to obtain the receipt and vouchers of each and every expenditure - Once the expenditure is incurred for the purpose of the business, the same is allowable - Decided in favour of assessee. Addition of business promotion expenses – Held that:- The assessing officer did not offered any proper justification regarding adhoc disallowance of expenses - Decided in favour of assessee. - ITA No.1162/PN/2011 - - - Dated:- 31-1-2013 - Shri G. S. Pannu And Shri R. S. Padvekar,JJ. For the Appellant : Shri P. D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... element was not verifiable for want of specific details. 2. In respect of the ground no.1, it is necessary to give the brief background of this case. The assessee is in the manufacturing of Programmable Logic Controllers, Human Machine Interface (HMI) and spare parts thereof. The assessee filed the return of income declaring total income of Rs.1,60,95,570/- for the A.Y. 2004-05. The assessee's case was selected for scrutiny and assessment has been completed u/s 143(3) of the Act. So far as disallowance of the telephone expenses are concerned, the A.O. made the disallowance by giving the reason that personal use of the telephone being very common cannot be totally ruled out. He therefore, made total disallowance of Rs.1,48,222/-, out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of local conveyance expenses. The A.O. has noted that self-made vouchers were not fully payable for want of specific details. He therefore, made the 10% of the disallowance which was worked out to Rs.86,143/-, which was confirmed by the Ld. CIT(A). We have heard the parties. We find that the disallowance made by the A.O. and confirmed by the Ld. CIT(A) is merely on suspicion. The A.O. himself admit that self-made vouchers were produced by the assessee. Atleast A.O. could have given some instances to show that in fact the conveyance expenditure include personal element. There is no justification to sustain such adhoc disallowance on the cryptic reason given by the A.O. Accordingly, same is deleted. Ground No.4 is allowed. 6. Groun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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