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TMI Blog2014 (6) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is excessive or it was not incurred at all - the assessee contended 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 – revenue was unable to point out how the expenditure incurred by the assessee was excessive or unreasonable – revenue could not point out or place any material to contradict the findings of the CIT(A), thus, the order of the CIT(A) is upheld – Decided against Revenue. - ITA No. 1781/Hyd/2012 - - - Dated:- 19-5-2014 - Shri D. Manmohan And Shri Chandra Poojari,JJ. For the Appellant : Shri M. H. Naik DR For the Respondent : None ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sentative, it appears that he has not raised any objection with regard to the fact that some disallowance was called for, since he was unable to produce fool-proof vouchers to evidence in that regard. The Assessing Officer, however, sought to disallow the entire expenditure as not connected to business and accordingly, completed the assessment on a total income of Rs.14,88,560. 4. Aggrieved, the assessee contended before the CIT(A) that it supplies labour at fixed and competitive rate and it has entered into an agreement with Zuari Cement Factory and obtained the contract because of the competitive price quoted. The books were subjected to compulsory audit under S.44AB of the Act. All vouchers, labour registers and provident fund records ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a minor percentage of the claim, having regard to overall circumstances of the case, but should not be to the extent resulting in enhancement of the returned income by about 600%. 5. Having regard to circumstances of the case, the learned CIT(A) restricted the disallowance to Rs.75,000 by observing as follows- 4.2. ..In the absence of cogent reasons, since authenticity of such expenditure could be susceptible, some reasonable amount could be disallowed, but not the entire amount as pointed out by the Assessing Officer. Thus, having regard to the findings of the AO and also the submissions of the AR, I am of the considered opinion that ends of justice are met if the disallowance is restricted to Rs.75,000/- and the AO is directed acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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