2021 (7) TMI 436

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..... ITAT MUMBAI] By respectfully following the above decision we are also inclined to direct the Assessing Officer to disallow only 5% of the total expenses. Accordingly, the amount raised by the assessee are allowed. - ITA No. 5948/MUM/2019 (Assessment Year: 2014-15) - - - Dated:- 8-6-2021 - SHRI S. RIFAUR RAHMAN (ACCOUNTANT MEMBER) AND SHRI RAVISH SOOD (JUDICIAL MEMBER) Assessee by: Mr. Prateek Jain, AR Revenue by: Mr. Sushil Kumar Mishra, DR ORDER PER S. RIFAUR RAHMAN, A.M. This is an appeal filed by the assessee. The relevant assessment year is 2014-15. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-4, Mumbai [in short CIT(A) ] and arises out of the assessment complete .....

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..... o. In response, AR of the assessee submitted that all the said expenses are incurred for business purpose and the same are audited by the auditors of the assessee and the auditors have not found any discrepancies. Thus, the AR of the assessee also produced bills for verification. After verification of the above details, the Assessing Officer observed that the most of the expenses are booked by way of self-made vouchers and in some of the cases payments were made in cash and not supported by proper bills. Therefore, the AO disallowed 10% of the above expenses. Aggrieved with the above order, the assessee preferred an appeal before CIT(A)-4, Mumbai, at the time of appellate proceedings, the assessee was asked to produce all bills and vouch .....

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..... directed accordingly. He prayed that the case of the assessee may be decided as per the above order. 4. On the other hand, the Ld. DR relied on the order passed by the lower authorities. 5. Considered the rival submissions and material on record. We notice that the Assessing Officer disallowed the various expenses incurred by the assessee by observing that all the expenses were incurred by the assessee are booked by way of self-made vouchers and in some cases payments are made in cash and not supported by proper bills. Accordingly, he disallowed 10% of the total expenses. This issue was already considered by the Co-ordinate Bench and reduced the disallowance from 10% to 5% in assessee s own case in assessment year 2013-14 (ITA No .....

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