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TMI Blog2019 (4) TMI 1109X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Here in this case, the AO has not passed any order u/s 144 of the Act. AO thus without rejecting the books of account of the assessee has gone for estimation on suspicion and conjectures that the assessee may be inflating its expenses with the self-made vouchers. While scrutinizing the expenditure if the expenses claimed are not having any nexus to the business of the assessee or if there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwal, Advocate For the Respondent : Shri Shankar Halder, Sr. DR ORDER PER SHRI A.T.VARKEY, JM This is an appeal preferred by the Assessee against the order of Ld. CIT(A) Jalpaiguri dated 07.03.2018 for Assessment Year 2009-10. The main grievance of the assessee is against the action of the Ld. CIT(A) in restricting the disallowance by 5% when AO disallowed 10% expenditure cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany s, accounts are audited and the AO while scrutinizing the expenses claimed by the assessee disallowed the same to the tune of ₹ 8,86,176/- which was 10 percentage of the expenses claimed because the assessee produced before the AO self-made debit vouchers. 4. We note that the AO could have ventured into estimation only after rejecting the books of accounts of the assessee u/s 145(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntage basis of the expenses claimed by the assessee which action of the AO is arbitrary in nature and cannot be sustained. Therefore, on the same reasoning, we set aside the Ld. CIT(A) order wherein also he had restricted the expenses claimed @ 5 percentage of expenses which is also adhoc disallowance. Therefore, the addition is directed to be deleted. Other grounds of appeal are general in nature ..... X X X X Extracts X X X X X X X X Extracts X X X X
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