9911796707
TMI Blog2021 (1) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer was wrong in making disallowance of Rs. 1,14,754/- out of expenses claimed under different heads in absence of any defects in books of accounts hence the addition made by Assessing officer and confirmed by CIT(A) is highly unjustified. 3-That in any view of the matter disallowance of Rs. 19,620/- out of advertisement expenses, Rs. 7,358/- out of miscellaneous expenses, Rs. 21,787/- out of shop expenses, Rs. 22,943/- out of repairs and maintenance expenses, Rs. 10,592/- out of special discount, Rs. 5,054/- out of telephone expenses, Rs. 27,400/- out of running vehicle expenses, totaling Rs. 1,14,754/- as made by the Assessing Officer and confirmed by CIT(A) is highly unjustified. 4-That in any view of the matter the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e record and noted certain specific expenses were not supported by the proper bills and vouchers and the same were also incurred in cash. Therefore, the AO made a disallowance of 20% of such expenses which were not supported by the proper bills and vouchers. Further in the absence of proper record, the AO has also disallowed the telephone and vehicle running expenses for personal use. He has relied upon the orders of the authorities below as well as decision of Hon'ble jurisdictional High Court in case of Pr. CIT vs. Rimjhim Ispat Limited 382 ITR 152 and submitted that the Hon'ble High Court has held that the expenditure claimed and shown in the profit & loss account were required to be proved by the production of bills and vouchers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 52,961/- i.e. Rs. 10,592/-, Telephone Expenses @ 20% of Rs. 25,271/- i.e. Rs. 5,054/-, Vehicle Running Expenses @20% of Rs. 1,36,999/- i.e. Rs. 27,400/-." 6. Thus it is clear that so far as the expenditure in respect of advertisement, miscellaneous expenses, repair and maintenance of shop expenses special discount, the same are disallowed by the AO for want of bills and vouchers. The expenditure on account of telephone and vehicle running are also disallowed to the extent of 20% for personal purpose. The assessee has not disputed the fact that the proper bills and vouchers were not produced by the assessee for verification therefore to that extent the assessee has failed to prove that all the expenses were incurred wholly and excess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn by the assessing authority that such expenses shown under this head were inflated or were not supported by any bills, vouchers or any other documentary evidence, which would justify the Assessing Officer in disallowing certain portion of such expenses. 8. In the light of the aforesaid, we are of the opinion that the Tribunal 8 committed an error in allowing the appeal of the assessee and by totally deleting the disallowance of 5 per cent. We, accordingly, allow the first question of law as stated aforesaid, in favour of the appellant, i.e., the Department and against the assessee and set aside that part of the order of the Tribunal on this aspect and restore the order of the first appellate authority. In our opinion, the disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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