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TMI Blog2019 (2) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction is allowable. Hence, the addition was rightly confirmed by the Ld. CIT(A), which does not need any interference Disallowance of 25% of expenses claimed under the heads consumables, power/ fuel, packing, freight, miscellaneous, telephone, conveyance, travelling etc. - no vouchers were produced for expenditure claimed - Held that:- AO has not made disallowance on adhoc basis but after giving full opportunity to the assessee who could only submit evidence of expenditure of about ₹ 8 lacs out of his claim of ₹ 54.92 lacs. In view of the facts of the case, the disallowance made by the AO was upheld. However, it was restricted to 1/10th of the expenditure not substantiated by the assessee i.e. ₹ 4,70,000/- which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of closing stock; alternatively deduction and benefit u/s. 80JJA; (ii) To delete the addition of ₹ 470,000 and alternatively allow benefit u/s. 80JJA. To restore returned income. (iii) Any other appropriate relief. 2. The brief facts of the case are that assessee filed his return of income on 29.11.2014, declaring income of ₹ 1,39,450/-. The assessee is running an industry of manufacturing of bio-fuel briquettes. The case of the assessee was picked up for complete scrutiny under CASS. Statutory notices and questionnaires were issued. The AR of the assessee attended the proceedings from time to time and filed the written replies during the course of assessment proceedings. The AO observed that the assessee has not decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee. Aggrieved with the impugned order, assessee is in appeal before the Tribunal. 3. During the hearing, Ld. counsel for the assessee has stated that the addition amounting to ₹ 14,62,636/- made on account of alleged suppression of closing stock by AO as sustained by Ld. CIT(A) is without citing any statutory provision and without proving any clandestine transaction, just relying on stray and isolated figures which stood reconciled and addition was made which is ex facie incorrect and made mechanically. He further submitted that the assessee s alternate claim to allow automatic deduction u/s. 80JJA on aforesaid addition of ₹ 14,62,636/- has been denied on invalid reasons and against the binding and cited CBDT Circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustan Sanitary Plaza, and this concern dealing in sanitary items. As this income is not derived from the activity of manufacturing which is covered u/s. 80JJA, no deduction is allowable. Hence, the addition of ₹ 14,62,636/- was rightly confirmed by the Ld. CIT(A), which does not need any interference on my part, therefore, I uphold the order of the Ld. CIT(A) on this issue and reject the grounds raised by the Assessee. 5.1 As regards sustaining of addition of ₹ 470,000/- is concerned, I note that AO has disallowed 25% of expenses claimed under the heads consumables, power/ fuel, packing, freight, miscellaneous, telephone, conveyance, travelling etc. as no vouchers were produced for expenditure claimed as ₹ 47 lacs (as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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