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TMI Blog2019 (12) TMI 1476X X X X Extracts X X X X X X X X Extracts X X X X ..... c findings that the claim of the expenditure are either bogus or not been incurred wholly and exclusively for the purposes of business, there is no basis for making any adhoc disallowance of expenses and the same cannot be sustained in the eyes of law. We find that similar issue has been examined by the Coordinate Bench in case of M/s Kumar Brothers vs. ITO.[ 2019 (9) TMI 1514 - ITAT JAIPUR ] If certain claim of expenditure is not found to be incurred wholly and exclusively for the business purpose of the assessee then the same is liable to be disallowed. However, if the expenditure incurred by the assessee is found for the business purpose of the assessee then due to certain irregularity in maintaining the supporting evidence an ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of ₹ 2,00,000/- was made by the Assessing Officer on account of disallowance of certain expenses claimed by the assessee in its profit and loss account. On the appeal, the same has been confirmed by the ld. CIT(A) and against the said findings, the assessee is in appeal before us. 3. During the course of hearing, the ld. AR submitted that the assessee is engaged in the Civil Construction activities and has reported gross turnover of ₹ 17,76,66,540/- and disclosed gross profit margin of 14.29% and net profit margin of 5.77%. It was submitted that the results so declared by the assessee are better than A.Y. 2014-15 wherein on turnover of ₹ 9,28,53,375/-, the assessee has disclosed gross profit margin of 14.27% an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bills and not verifiable fully, therefore, he has made a lumpsum disallowance of ₹ 2,00,000/-. In our view, in the absence of any specific findings that the claim of the expenditure are either bogus or not been incurred wholly and exclusively for the purposes of business, there is no basis for making any adhoc disallowance of expenses and the same cannot be sustained in the eyes of law. We find that similar issue has been examined by the Coordinate Bench in case of M/s Kumar Brothers vs. ITO (supra) wherein the Coordinate Bench has held as under:- 5. I have considered the rival submissions as well as relevant material on record. The A.O. has given reasons for making ad hoc disallowance of ₹ 1.50 lacs that too as a lump sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofession. Therefore, in my considered view a disallowance of ₹ 1,50,000/- out of the expenses claimed on the above mentioned expenditure is reasonable to cover the discrepancies mentioned by the A.O. in the assessment order. Accordingly, the ground of appeal on this issue is dismissed. If certain claim of expenditure is not found to be incurred wholly and exclusively for the business purpose of the assessee then the same is liable to be disallowed. However, if the expenditure incurred by the assessee is found for the business purpose of the assessee then due to certain irregularity in maintaining the supporting evidence an ad hoc disallowance is not called for. Accordingly, without specifying the instance of the expenditure, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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