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TMI Blog2022 (4) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee in the accounts under eight Heads - Since no details were submitted in support of these expenditures, AO made ad hoc disallowance at 25% of the total expenditures - HELD THAT:- We are of the view that there is no dispute that whenever a disallowance is to be worked out on the basis of an estimation, then some guesswork will always be involved. In the present case nature of expenses are salary wages, staff welfare expenses, travelling, telephone, etc. There might be some element of personal nature in some of the expenditure. But again that element would not be estimated at 15%, because certain expenditure namely demurrage to Railway, advertisement, salary wages are of such a nature, where no element of personal nature could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jpal Yadav, Vice President And Girish Agrawal, Member (A) For the Appellant : A.K. Rastogi, Sr. Advocate For the Respondents : Sanjay Mukherjee, CIT (D.R.) ORDER Per Rajpal Yadav, Vice President (KZ) The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), Patna-1 dated 31.08.2018 passed for the assessment year 2015-16. 2. The assessee has taken seven grounds of appeal. However, its grievances revolve around three issues. 3. With the assistance of the ld. representatives, we have gone through the record carefully. A perusal of the assessment order would reveal that the assessee has filed its return of income on 31.10.2015 declaring total income of ₹ 8,24,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. first appellate authority has scaled down the addition for item no. 2, i.e. out of disallowance of expenses and rest of the two issues, he concurred with the ld. Assessing Officer. 5. With regard to the first item of addition, it is observed that in the 26AS Statement, total receipts have been shown at ₹ 5,75,80,629.86, whereas the assessee has shown receipt of ₹ 5,68,27,840/-. There was a difference of ₹ 7,52,789/-. This difference has been added in the total income of the assessee. Ld. Counsel for the assessee submitted that since it was an ex-parte assessment order, therefore, efforts to reconcile the above could not be achieved. He prayed that this issue be remitted back to the file of the Assessing Officer for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... namely demurrage to Railway, advertisement, salary wages are of such a nature, where no element of personal nature could be worked out. Therefore, after taking into consideration the totality of expenditure, we direct the Assessing Officer to work out a disallowance at 10% of total expenditure, i.e. 10% of ₹ 30,41,436/- is confirmed. 9. As far as the third item is concerned, it reveals the disallowance of ₹ 38,13,610/-. This disallowance was made by the ld. Assessing Officer with the aid of section 40(a)(ia) of the Income Tax Act on the ground that the assessee failed to detect the TDS on the rent paid by it. Ld. Counsel for the assessee submitted that rent was paid to Railways i.e. almost to the Government Undertakings an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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