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TMI Blog2019 (10) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... vouchers - HELD THAT:- The said expenditure is incurred on account of Pala and Bharai which means payment is made for loading and unloading of the goods. Though, the payment in such nature of expenditure is made in cash to the labourers, however, the labourers in a particular mandi are regular labourers working and not the strange persons to the traders in a particular mandi. Therefore, once the labourers are known and working almost regularly with the assessee and other traders then the details and particulars of the recipients should be mentioned in the vouchers. Even when these are regular workers working in the mandi then vouchers must have been got signed from the recipients. Since the entire payment is made in cash, therefore, the disallowance restricted by the ld. CIT(A) to 10% is proper and reasonable. Disallowance of wheat expenses - addition restricted by the CIT(A) to 10% from 20% - HELD THAT:- This issue is identical to the issue of disallowance of soyabean expenses being on account of Pala and Bharai i.e. loading and unloading of the goods, therefore, in view of my finding on account of soyabean expenses, 10% disallowance restricted by the ld. CIT(A) is proper and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) allowed ₹ 181560/- and erred in sustaining the disallowance of ₹ 100,000/- on lump sum basis. 2. That the Ld. A.O. grossly erred on Law and facts in making the disallowance out of Soyabean expenses @ 20% on ad hoc basis. The Ld. C.I.T.(A) allowed in part and erred in sustaining the disallowance out of Soyabean expenses ₹ 27976.00. 3. That the Ld. A.O. grossly erred on Law and facts in making the disallowance out of Wheat expenses @ 20% on ad hoc basis. The Ld. C.I.T.(A) allowed in part and erred in sustaining the disallowance out of Wheat expenses ₹ 23481.00. 4. That the Ld. A.O. grossly erred on Law and facts in making the disallowance out of Various administrative expenses @ 20% on ad hoc basis. The Ld. C.I.T. (A) allowed in part and erred in sustaining the disallowance out of Various expenses ₹ 31917.00. 5. Any other ground at the time of hearing. 2. Ground No.1 of the appeal is regarding disallowance of transportation expenses @ 10% by the A.O. and an ad hoc disallowance was sustained by the ld. CIT(A) to the extent of ₹ 1.00 lac on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce produced by the assessee in respect of transport expenses and particularly in respect of the payment of less than ₹ 20,000/-. However, while making the disallowance, the A.O. has made disallowance of 10% of the entire expenditure without even giving details what is the percentage of payment made in cash, which is supported by self-made vouchers. Thus, the disallowance is made without considering the relevant facts. Further, when the transportation and freight expenses is inevitable in the assessee s line of business then without conducting any enquiry or giving a finding, the payment made by the assessee is either bogus or excessive/inflated then an ad hoc disallowance made by the A.O. of the entire claim of transport expenses where the majority of the payment has been made through cheques is not justified. The ld. CIT(A) has also confirmed the disallowance to the extent of ₹ 1.00 lacs which is an ad hoc disallowance without considering the relevant facts on the issue, accordingly, the disallowance sustained by the ld. CIT(A) is deleted. 6. Ground No. 2 of the appeal is regarding disallowance of soyabean expenses @ 20%. The assessee has debited amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly with the assessee and other traders then the details and particulars of the recipients should be mentioned in the vouchers. Even when these are regular workers working in the mandi then vouchers must have been got signed from the recipients. Since the entire payment is made in cash, therefore, the disallowance restricted by the ld. CIT(A) to 10% is proper and reasonable. Hence, I do not find any reason to interfere with the order of the ld. CIT(A) qua this issue. 10. Ground No. 3 of the appeal is regarding disallowance of wheat expenses, which was restricted by the ld. CIT(A) to 10% from 20%. 11. I have heard the ld AR as well as the ld.DR and perused the material on record. This issue is identical to the issue of disallowance of soyabean expenses being on account of Pala and Bharai i.e. loading and unloading of the goods, therefore, in view of my finding on account of soyabean expenses, 10% disallowance restricted by the ld. CIT(A) is proper and justified. 12. Ground No. 4 of the appeal is regarding disallowance of administrative expenses. The A.O. noted that the assessee has debited office expenses, telephone expenses, vehicle run ..... X X X X Extracts X X X X X X X X Extracts X X X X
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