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TMI Blog2015 (7) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for statistical purposes. Adhoc disallowance of 10% of the expenditure on repairs and maintenance of plant and machinery - Held that:- AO in his assessment order in para-5 has observed that in the instant case, the assessee has simply furnished copy of ledger account of the plant & machinery repairs and maintenance expenses claimed during the year. Mere furnishing of the copy of the ledger account would not prove that the expenditure has been incurred wholly and exclusively for the purpose of the business. It is observed by the AO that no other supporting evidence has been produced for verification. It is transpired from the records that the assessee has not filed any supporting evidence in the form of bills or vouchers either before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be deleted. 2. In view of the facts and circumstances of the case, the Ld.CIT(A) ought to have held that the Ld.A.O. has erred in law and in facts in disallowing on ad-hoc basis 10% of the expenditure on repairs and maintenance of plant and machinery which amounted to ₹ 2,83,028 and hence Your Appellant most humbly Prays that the impugned addition be deleted. 3. Such other relief(s) to which the appellant may be lawfully entitled to. 2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as the Act ) was framed vide order dated 10/12/2010, thereby the Assessing Officer (AO in short) made additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal in assessee s own case bearing ITA No.976/Ahd/2010 for AY 2007-08 was pleased to decide the issue of difference in the opening and closing stock of workin- progress in para-7 of its order dated 31/08/2012, by observing as under:- 7. We have heard the rival submissions and perused the material available on records. It is not disputed by Revenue that in AY 2005-06 the assessee was allowed to treat the closing stock of earlier year as opening stock of next year. It is well settled that the closing stock of earlier becomes the opening stock of succeeding year. In this view of matter and examining all aspects, it would be in the interest of justice if the assessing officer is directed to allow the closing stock of last year as the op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of the copy of the ledger account would not prove that the expenditure has been incurred wholly and exclusively for the purpose of the business. It is observed by the AO that no other supporting evidence has been produced for verification. It is transpired from the records that the assessee has not filed any supporting evidence in the form of bills or vouchers either before the AO or before the ld.CIT(A) and even before this Tribunal also no material has been placed suggesting that the assessee has incurred the said expenditure. Under these facts, we do not see any reason to interfere with the orders of the authorities below on this issue. Thus, this ground of assessee s appeal is dismissed. 7. Ground No.3 is general in nature which r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.1 of assessee s appeal in ITA No.916/Ahd/2012 for AY 2009- 10, is allowed for statistical purposes. The AO is directed to allow the closing stock of the preceding year as opening stock of the current year as no change into facts has been pointed out in the year under appeal. 9.2. Apropos to ground No.2, both the parties have adopted their arguments as were advanced in assessee s own case in ITA No.3157/Ahd/2011 for AY 2008-09. Since the facts are identical to the facts of assessee s own case in AY 2008-09(supra) and assessee has not placed any material in support of its claim for expenditure towards repair and maintenance of plant and machinery, therefore this ground of assessee s appeal is rejected. 9.3. Ground No.3 is general in n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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