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TMI Blog2018 (8) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... and decided in appeal. Consequently, the application before us questioning the validity of rejection of the said rectification application rendered infructuous. Appeal dismissed - Decided against the assessee. - I.T.A. No. 2079/Ahd/2016 - - - Dated:- 7-8-2018 - Shri Waseem Ahmed, Accountant Member And Ms. Madhumita Roy, Judicial Member Appellant by : Shri M.K. Patel, AR Respondent by : Shri V.K. Singh, Sr. DR ORDER Per Ms. Madhumita Roy - JM The instant appeal has been filed by the assessee before us against the order dated 12.05.2016 passed by the Commissioner of Income Tax(Appeals)-2, Vadodara [Ld.CIT(A) in short] for Assessment Year (AY) 2004-05 whereby and whereunder the application filed by the assessee u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07. Ocean Freight 5,75,620 08. Commission 1,99,066 09. Staff welfare expenses 2,19,529 10. Bank interest 17,39,785 11. Miscellaneous expenses 1,23,774 12. Professional charges 3,65,708 13. Telephone and related expenses 2,88,696 14. Travelling foreign and travel expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reducing the loss declared in the return of income. It is held that tax that would have been chargeable on the income in respect of which particular have been concealed or inaccurate particulars have been furnished had such income been total income. Therefore penalty proceedings u/s.271(1)(c) are initiated as provided in explanation 4(a) to section 271(1)(c) submitted by Finance Act 2002 w.e.f.01.04.2003. Subject to above remarks, the total income of the assessee is worked out as under: Total loss as per computation of income (-) ₹ 56,80,980 Add: Disallowances/Additions 1. Indirect expenses as discussed in (para-5) ₹ 36,74,875 2. Bad debts written off as discussed in para-6 ₹ 13,51,685 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his submission had itself admitted that the amounts of ₹ 5,61,9111/- pertain to the prior financial year as it was a balance as on 01.04.2003. Hence, this amounts being prior period expenses and there being no explanation on behalf of the appellant as to how these amounts are allowable in the current assessment year, the same cannot be allowed as deduction in computation of income of the A.Y. 2004-05. Hence, the A.O. is directed to disallow this amount. (ii) The following expenses have been paid through bank and vide cheque: Electricity charges ₹ 4,24,692/- Bank Interest ₹ 17,39,785/- Professional charges ₹ 3,65,708/- Telephone and related expenses ₹ 2,88,696/- Hence, these a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 5,71,096/- only was debited to the Profit Loss Account under this head during the year. b) In view of the above, it is submitted that while deciding the appellant the expenses amounting to ₹ 5,61,911/- have wrongly been held as Prior Period Expenses. All the relevant documents viz. (i) Copy of Assessment Order dated 6.11.2006; and (ii) Copy of submissions filed before the Hon ble CIT(A) are enclosed as EXHIBIT-II and III respectively. 3.2. The said application was thereafter dismissed by the Ld. CIT(A)-2, Vadodara by and under an order dated 12.05.2016 with the following observation: 4. I have carefully considered the facts on records, rectification application and submissions of the Ld. Authorized Represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative pronouncements, it has been propounded that in making a best judgment assessment, the Assessing Officer must not act dishonestly or vindictively or capriciously. He must make, what he honestly believe to be a fair estimate of the proper figure of assessment and for this purpose he must be able to take into consideration, local knowledge, reputation of the assessee about his business, the previous history of the assessee or the similarly situated assessee. It is also pertinent to mention that judgment is a faculty to decide matter with wisdom, truly and legally. Judgment does not depend upon the arbitrary, caprice of an adjudicator, but on settled and invariably principles of justice. Thus, in a best judgment, even if, there is an ele ..... X X X X Extracts X X X X X X X X Extracts X X X X
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