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TMI Blog2017 (2) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... re raised for all the assessment years except for variance in figures. Hence grounds relevant to the assessment year 2008-09 are reproduced below: 1.The Assessing Officer has disallowed a sum of Rs. 4,58,012/- on estimate basis stating that internal vouchers are only maintained. The CIT(A) has confirmed the finding without considering the facts and circumstances of the case. 2. The estimate of food sale, soda and cola and empties on the basis of liquor sale and then estimating the net profit on this was made without any basis. The CIT(A) has confirmed the findings of the officer ignoring the submissions of the assessee. The fact that there were no incriminating documents relating to this year was also ignored by the officer and CIT(Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale of soda and soft drinks at 4.62%of the liquor sale. iv) Estimating the sale of empties at 5.7% of the liquor sale. v) Disallowance of expenses 4. Aggrieved by the order of the assessments, the assessee preferred appeals to the first appellate authority. The CIT(A) allowed the assessee's claim regarding gross profit on sale of liquor. 5. Aggrieved by the order of the CIT(A), the assessee has preferred the present appeals before the Tribunal contesting the sustenance of addition with regard to the estimation of gross profit on sale of food at 12% and disallowance of expenses. The Ld. Counsel for the assessee has filed a brief written submission with regard to estimation of gross profit on food and disallowance of expenses. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the officer. Estimating a huge income and not allowing the actual expenditure is against all norms of justice. The assessment was based on the revised profit and loss account and disallowing a portion of it stating that it was not claimed in the original return was against law and facts and hence these expenses are to be allowed." 6. The Ld. DR has filed a brief written submission. The relevant portion reads as follows: "5. In fact inpage-2 of Assessment order (sub-para 6) for AY 2008-09, the Assessing Officer has mentioned that the correctness of expenditure as per original Profit& Loss Account is not doubted. The relevant para is reproduced as under. "His books though rejected on profit aspects give reasonable picture for expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of appellant that total expenses be taken at Rs. 1,03,10,112/- before the Hon. ITAT, is nothing but an after thought to avoid payment of tax liability, especially as he has originally (vide letter dated 21/09/2012) accepted for total expenses available in original profit & loss account." 7. I have heard the rival submissions and perused the material on record. I shall adjudicate the issue raised as under: Estimation of Gross Profit on sale of Food The Assessing Officer has estimated the sale of food as a percentage of the liquor sales. The learned AR had submitted that the hotel is situated in a Panchayat where the food sales are very minimum. The villagers will have a drink and the food will be taken in their home. The average gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges, travelling expenses etc. based on which the assessment was completed by the Assessing Officer. The assessee also stated that the assessment was based on the revised profit and loss account and disallowing a portion of it stating that it was not claimed in the original return is against law and facts. The CIT(A) has also accepted the expenses but has stated that these expenses are supported by internal vouchers only. The assessee has produced orders passed by the CIT(A) in the connected group cases where the expenses have been fully allowed. The learned DR has submitted a written submission in which it has been stated that the revised return has been filed only on long after issue of notice u/s. 148 of the Act. Subsequently, the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of the Profit and Loss account for the year ended on 31.03.2008 as Rs. 81,45,850/- against the actual figure of Rs. 1,03,10,112/-. The action of the assessing officer has increased the income by 21,64,262/- which is against the actual facts." 8.1 With regard to the above issue, the contention of the assessee is as follows: "Wrong disallowance of expenses AY 2008-09 In the assessment order for 2008-09 while computing the income the assessing officer has wrongly deducted the total expenses as per P&L Rs. 81,45,850/- instead of the actual figure of Rs. 1,03,10,112/-. The figure deducted by the Assessing Officer is that of the original return. The assessment was completed based on the revised return and the disallowance of Rs. 4,58,01 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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