9911796707
TMI Blog2014 (6) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... f disallowance by the CIT(A) is without any rationale. 3. Facts necessary for the disposal of the appeal are stated in brief: The assessee is a partnership firm at Kadapa, which has secured labour supply contract from Zuari Cement Factory, at high competition, for packing, unloading of materials and maintenance works at factory. According to the assessee firm, it had to obtain labour contract by quoting highly competitive price, for packing loading and unloading of material and maintenance works at factory and in such labour supply contract, profit would not be higher. For the year under consideration, it declared total income of Rs.2,50,900. When the case was selected for scrutiny, the Assessing Officer noticed that the assessee incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure. Apart from wages and salaries, the assessee furnished explanation with regard to conveyance, travelling etc, by stating that some expenditure was necessary in the interests of justice and merely because vouchers wren not properly signed, it cannot be said that no such expenditure was incurred. At any rate, making an arbitrary addition by disallowing the entire amount, resulting in enhancement of the returned income by 593%, is not justified in the circumstances of the case. It was also contended that though the learned Authorised Representative conceded before the Assessing Officer that foolproof vouchers are not possible in the activities of the assessee, but no where there was any concession with regard to disallowance of enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aries, conveyance, and other expenses and travelling expense. The Learned Departmental Representative was not able to furnish any details. In fact, it is not the case of the Revenue that the expenditure incurred by the assessee is excessive or it was not incurred at all. On the contrary, the case of the assessee is that even though fool-proof evidence could not be furnished, authenticity of such expenditure cannot be disputed, but for want of foolproof vouchers, at best, reasonable percentage of expenditure can be disallowed. The Learned Departmental Representative was unable to point out how the expenditure incurred by the assessee was excessive or unreasonable. Since the Revenue, which has preferred the appeal, could not point out or plac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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