9911796707
TMI Blog2022 (3) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of the assessee. We observe that no doubt the assessee has not submitted proper documents, the disallowance based on Ms. Anita L. Ghadge to the extent of 30% is too high. Disallowance of 10% of the total expenses will be appropriate, considering the fact that Assessing Officer in the subsequent assessment year has disallowed only 5% of the expenses in the regular assessment u/s. 143(3) of the Act. Therefore, we direct Assessing Officer to disallow 10% of the total expenses claimed by the assessee. Accordingly, ground raised by the assessee is partly allowed. - ITA No. 1193/MUM/2020 - - - Dated:- 17-2-2022 - SMT DIVA SINGH , HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN , HON'BLE ACCOUNTANT MEMBER For the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, notices u/s. 143(2) and 142(1) were issued and served on the assessee. The Assessing Officer observed that the assessee has not filed any objection to the reopening of the case. The assessee is an individual and engaged in the business of selling holiday plans. During the year assessee derived income under the head income from house property , business or profession and other sources . 4. Assessing Officer after verification of Profit and Loss Account observed that assessee has claimed ₹ 1,87,02,229/- as expenses for this year and assessee was asked to furnish the documentary evidences like bills, vouchers, invoices, copy of bank statements and details of TDS deducted in support of the aforesaid expenses debited in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the commission agent of M/s. Royal Twinkle Star Club Pvt. Ltd. and M/s. Citrus Check Inns Pvt. Ltd., expenses claimed were restricted to 70 percent of the total expenses claimed and 30 percent of the expenses were disallowed as the assessee could not furnish the details of expenses incurred and in many cases TDS was not deducted, by considering this fact of the case and material available on record and the information received into consideration, an amount of ₹ 56,10,669/- being 30 percent total expenses of ₹ 1,87,02,229 debited in Profit and Loss Account is disallowed on an estimate basis as not proved or established to have been laid out or expended wholly and exclusively for the purposing the commission income and added to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After considering submissions of the assessee, Ld. CIT(A) rejected the plea and dismissed the appeal filed by the assessee. Further, he observed that in the case of Anita L. Ghadge (supra) the ITAT has confirmed the disallowance made by the Assessing Officer. 7. Aggrieved assessee preferred appeal before us raising following grounds in its appeal:- The learned Asst. Commissioner of Income Tax has erred in passing the order under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 and disallowing expenses which were incurred during the year. The learned Asst. Commissioner of Income Tax has erred in making addition in total income of the assessee. The learned ACIT has erred in not taking into consideration explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n support of the above expenditure, it shows that the expenditure claimed by the assessee are not genuine. He brought to our notice the facts in Anita L. Ghadge (supra) case where in ITAT has confirmed the disallowance at 30%. He submitted that since assessee is dealing with same group of companies and facts of the assessee are exactly same, hence, he supported the orders of the lower authorities in confirming the disallowance of 30%. 11. Considered the rival submissions and material placed on record, we observed that assessee has not submitted any document before tax authorities for claiming the expenses. We also observed that Assessing Officer fully relied on the findings in the case of Ms. Anita L. Ghadge without analyzing the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X
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