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TMI Blog2014 (1) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstantiate the fact that the assessee has inflated its expenditure or there was some element of personal use pertaining to the amount claimed by the assessee as expenses. The addition made by the Assessing Officer and partly confirmed by the CIT (A) is not sustainable – there is no valid reason to make ad hoc disallowance and addition only on the basis of imaginary allegation without substantiating the fact that there was some element of inflated claim or personal use by the assessee – Decided in favour of Assessee. - ITA No.5729/Del/2011 - - - Dated:- 31-5-2013 - B C Meena and Chandra Mohan Garg, JJ. For the Appellant : Shri S K Gupta For the Respondent : Shri Bhim Singh, Sr. DR ORDER:- PER : Chandra Mohan Garg Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account payee cheques. However, in respect of balance of payment of Rs.25,99,191/-, the assessee could not furnish required details as per the Assessing Officer. The Assessing Officer held that in absence of required information, it was not possible for him to find out as to whether the persons or parties to whom payment had been made were having more than two trucks during the year under consideration. The Assessing Officer also took a view that in the absence of person wise details, it was also not ascertainable whether any TDS was to be deducted. The Assessing Officer observed that the evidence produced by the appellant in support of payment was in the form of self made vouchers without having serial numbers and the Assessing Officer he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the Assessing Officer is not entitled to make a pure guess work without reference to any material at all. The AR also submitted that there must be something more than bare suspicion to support the addition made in the assessment u/s 143(3) of the Act. 6. Replying to the above, the ld. DR submitted that since the appellant has not maintained its vouchers in a chronological manner and not even the names of the drivers have been made available to the Assessing Officer, therefore, the Assessing Officer rightly made an addition and it was properly restricted by the Commissioner of Income Tax(A) to 10% of cash payments made by the assessee. The DR also pointed out that the Commissioner of Income Tax(A) took a justified approach by allowing p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was beyond the control of the assessee because the assessee is mainly dealing with the hotels and restaurants and supply of fruits and vegetables is made on a fixed price throughout the year. The AR further submitted that there was a steep hike in the wholesale prices of fruits and vegetables during the year under consideration and assessee was bound to obey the sale agreement with the permanent clients in order to procure regular business. The AR also pointed out that the assessee is a sincere taxpayer and disallowance made by the Assessing Officer and partly confirmed by the Commissioner of Income Tax(A) was based on surmises and conjectures which is not permissible under the provisions of the Act. 8. Although the DR has supported the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accept such books and/or entries therein, barring the special deeming and specific onus provisions, to be correct unless he has in his possession some material to the contrary. 10. In the case in hand, from the assessment order, we observe that the Assessing Officer made addition of 25% of the claim and in the first appeal, the Commissioner of Income Tax(A) restricted the disallowance to 10% of expenses being made in cash by the assessee but these ad hoc disallowances are based on surmises and conjectures. We have no hesitation to hold that the ad hoc disallowance and addition thereunder cannot be made on the basis of hyper technical approach or imaginary observation. The Assessing Officer is bound to bring some element or material to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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