9911796707
TMI Blog2019 (11) TMI 1295X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the assessee is allowed on this issue. Disallowance of various expenses - HELD THAT:- It is noticed that during the course of assessment and appellate proceedings, the assessee has failed to produce the supporting bill and voucher in support of its claim of incurring various expenses as cited above. Under these circumstances, we observed that ld. CIT(A) is justified in sustaining disallowance of all the expenditure except foreign travelling expenses for want of proper verification on account of not furnishing the bill and voucher by the assessee. In the case of foreign travelling expenses, the assessing officer has disallowed expenses of ₹ 50,000/- out of 1,42,000/- and this disallowance is 30% of the total expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out giving any adverse findings, [i.e. Labour charge Re. 1.00 lakh, Machine repair maintenance Re. 1.00 lakh, foreign travel Re. 0.50 lakh, outward freight Re. 3.85 lakhs building repair Re. 0.48 lakh]. The books of accounts of company are audited. 3. The fact in brief is that return of income declaring income of ₹ 58,08,013/- was filed on 29th Nov, 2014. The case was selected under scrutiny assessment. The assessment u/s. 143(3) of the act was completed on 22nd December, 2016. The remaining facts of the case are discussed while adjudicating the aforesaid two grounds of appeal as under:- Ground No. 1 (Addition on account of Vat refund income not shown in return of income) 4. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the Vat refund received of ₹ 79,78,941/- credited outstanding balance in the receivable account shall be ₹ 20,68,999/-. Considering the forgoing facts, the addition is deleted and the appeal of the assessee is allowed on this issue. Ground No. 2 (In confirming disallowance of ₹ 6,82,511/- out of various expenses) 7. During the course of assessment, the assessee was requested to furnish bills and vouchers in support of expenses incurred. In spite of giving repeated opportunities, the assessee has failed to produce bill/voucher for verification of the expenses. Consequently, the assessing officer has made disallowance out of the various expenses as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the expenditure except foreign travelling expenses for want of proper verification on account of not furnishing the bill and voucher by the assessee. However, in the case of foreign travelling expenses, the assessing officer has disallowed expenses of ₹ 50,000/- out of 1,42,000/- and this disallowance is 30% of the total expenses. We observed that it will be reasonable to restrict the disallowance out of foreign travelling expenditure to the extent of 20% of such expenses which comes to 28,400/- as against ₹ 50,000/- disallowed by the assessing officer. Accordingly, this ground of appeal of the assessee is partly allowed. 10. In the result, the appeal of the assessee is partly allowed. Order pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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