9911796707
TMI Blog2017 (2) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... Admittedly, the Assessing Officer has stated that the expenses are genuine and supported by vouchers. In such a case the Assessing Officer could not have disallowed the expenses. It is also noticed that the CIT(A) has also not correctly appreciated the facts of the present case. Considering the entire facts and circumstances of the present case, it is of the view, that there was no justification in making the disallowance of expenses. Therefore, delete the disallowance of expenses made by the Assessing Officer and confirmed by the CIT(A). - I.T.A. Nos.399-401/Coch/2016 - - - Dated:- 2-2-2017 - SHRI GEORGE GEORGE K., JUDICIAL MEMBER For The Assessee : Shri Mathew Joseph, CA For The Revenue : Shri A. Dhanaraj, Sr. DR ORDER Per GEORGE GEORGE K.,JUDICIAL MEMBER: These appeals at the instance of the assessee are directed against the consolidated order of the CIT(A)-IV, Kochi dated 16/06/2016. The relevant assessment years are 2008-09 to 2010-11. 2. Since common issues are raised in these appeals, they were heard together and are disposed off by this consolidated order. Identical grounds are raised for all the assessment years except for variance in figure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 relevant potion reads as follows: Estimation of gross profit on food The assessing officer has estimated the sale of food as a percentage of the liquor sales based on the statements impounded. But these documents have no evidence to show the gross profit percentage. The hotel is situated in a Panchayath and the food sales are very minimum. There are no walk in customers. The villagers have a drink and they had their food from their homes. The food for more than 30 staff is also provided from the hotel. The rate of gross profit @ 12% of the estimated sales (the G.P. on liquor is taken on the purchase value) wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect accounts relating to their business transaction for 2007-08. The manger of Green Park Hotel has admitted the offence and has prayed for composition of offence before the Commercial Tax Department. 7. In the light of the above, the Assessing Officer has correctly taken the total expenses of the firm at ₹ 81,45,850/- based on the original return and Profit Loss account filed alongwith the original return. 8. It is therefore submitted that the Assessing Officer, has after taking into account the impounded materials, sworn statements, original return, order of Commercial Tax Officer, Angamally and other relevant material and finalized the assessment on 08/02/2013, adopting total expenses at ₹ 81,45,850/- and the same be upheld. 9. The prayer of appellant that total expenses be taken at ₹ 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: Esti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Assessing Officer based on the impounded material adopted the average margin for completing the assessment. But the learned AR stated that since assessment was based on the revised profit and loss account the expenses claimed has to be allowed. 7.2 I have gone through the arguments of both parties and perused the material on record. The Assessing Officer disallowed the expenses for the reason that the assessee could not produce external evidences for the expenses disallowed. The contention of the assessee is that these expenses are recorded in the monthly statements impounded from the assessee s premises based on which the assessment is completed was ignored by the Assessing Officer and the CIT(A). Admittedly, the Assessing Officer has stated that the expenses are genuine and supported by vouchers. In such a case the Assessing Officer could not have disallowed the expenses. It is also noticed that the CIT(A) has also not correctly appreciated the facts of the present case. Considering the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
