9911796707
TMI Blog2018 (8) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act and pass assessment order under Section 144 of the Act. Instead, the AO had disallowed the claim of expenditure on "Consumable Stores" only 10%. The assessee is not prejudiced in any manner in not resorting to the best judgment assessment by the AO. Disallowance sustained - Decided against the assessee. - INCOME TAX APPEAL No. 307 of 2015 - - - Dated:- 14-8-2018 - Hon'ble Bharati Sapru And Hon'ble Dinesh Kumar Singh, JJ. For the Appellant : Suyash Agarwal For the Respondent : Krishna Agrawal ORDER ( Per Hon'ble Dinesh Kumar Singh, J. ) . The present Income Tax Appeal has been filed by the assessee under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 15.11.2002. From examination of the books of account the assessing officer noticed that in the Profit and Loss account the assessee had claimed an expenditure amounting to ₹ 13,16,00,830/- under the head ''Consumable Stores'' as against ₹ 5,79,67,751/- claimed in the immediate preceding year. However, the activities of the assessee remained the same as was in the immediate preceding year. No supporting evidence for claiming this amount towards consumable stores was produced by the assessee before the AO. The AO also recorded a finding of the fact that the expenses claimed under this head were also incurred in cash. In absence of evidence to establish the claim of Consumable Stores , 10% of the expenses clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment Year 2000-01 to 26,587 M.T. in the current assessment year, whereas the consumables had increased by more than 100% and same could not be explained by the assessee. The CIT(A) was of the view that the AO had been quite generous in disallowing 10% of assessee's claim of ₹ 13.16 crores in respect of Consumable Stores . The CIT(A) dismissed the appeal and confirmed disallowanace. 6. Aggrieved by the aforesaid order of the CIT(A), the assessee filed the second appeal before the Income Tax Appellate Tribunal. The Tribunal also after examining and comparing the consumables and productions, came to the conclusion that increase in consumables from the Assessment Years 2000-01 to 2001-02 was around 127% whereas the increase in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r exponentially increase in the expenditure on consumables. It was permissible for the AO to reject the books of account under Section 145 of the Act and pass assessment order under Section 144 of the Act. Instead, the AO had disallowed the claim of expenditure on Consumable Stores only 10%. The assessee is not prejudiced in any manner in not resorting to the best judgment assessment by the AO. When the assessee had failed to substantiate its claim for more than 100% rise in expenditure on Consumable Stores if compared with the immediate preceding year whereas the production was increased marginally, the AO taking a liberal view of the matter had disallowed only 10% of the expenditure on Consumable Stores . We therefore, do not find an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
