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TMI Blog2022 (5) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... he expenses incurred is not proved with proper evidences and mostly done by cash mode. After going through the order of the learned CIT(A), we are not in agreement with the order of the learned CIT(A) in estimating the profit at 0.60% on the net profit when the assessee has not produced any evidences on the claim of expenses. In the above circumstances, we are of the considered opinion that it would serve the interest of justice, if we restrict the disallowance to 1% of the total turnover of Rs. 27,93,02,001/-, i.e. Rs. 27,93,020/-. Thus, the Assessing Officer is directed to restrict the disallowance to 1% of the total turnover of Rs. 27,93,02,001/-, i.e. Rs. 27,93,020/- and pass appropriate order. - ITA No. 1858/Ahd/2019 - - - Dated:- 22-4-2022 - DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Assessee by : None Written submission on record Revenue by : Shri R.R. Makwana, Sr. DR ORDER Per T. R. Senthil Kumar, Judicial Member This is an appeal filed by the assessee against the order dated 04.09.2019 passed by the learned Commissioner of Income Tax (Appeals)-10, Ahmedabad [hereinafter referred to as the CIT(A) ] relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of any invoices/bills/vouchers, complete cash book etc., the genuineness and correctness of expenses could not be verified by the Assessing Officer. Keeping in mind that the assessee is engaged in the transportation business but he could not submit any documentary evidences to substantiate his claim, 3% of the total other expenses of Rs. 27,93,02,001/- as claimed by the assessee in his return of income for the Assessment Year 2016-17, i.e. Rs. 83,79,060/- is disallowed by the Assessing Officer and added back to the total income of the assessee. The Assessing Officer thus completed the assessment by determining the total income at Rs. 86,83,140/- vide order dated 21.12.2018 passed under Section 143(3) of the Act. The Assessing Officer also initiated penalty proceedings under Section 271(1)(c) of the Act for furnishing inaccurate particulars of income. 4. Aggrieved by the assessment order, an appeal was preferred by the assessee before the learned CIT(A). However, the learned CIT(A) vide his detailed order dated 04.09.2019 estimated the net profit of the assessee at 0.60% of his total turnover which comes to Rs. 17,95,810/- and thus reduced the disallowance to that extent and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal- 2013-14 1053292 1068388 22212406 13.32% 1 1 50925 0.69% 50321048 Addition For Car Exp IT Refund. Appeal Preferred But Tax Paid 2014-15 1286054 1399060 25470453 12.11% 1214901 0.58% 72801768 Addition For Car Exp TDS Interest - Tax Paid. 2015-16 -4103819 N.A. 31923712 12.67% -4055169 244566323 Due To Depreciation On Truck - Loss. 2016-17 304082 8683140 38209457 13.23% -56074 279302001 Due to Depreciation on Truck Law Income. Addition For Other Exp Not Warranted Prayed In Appeal The net profit which was 0.73% in A.Y. 2012-13 has come to negative in A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of showing comparison of GP NP and depreciation effects c) Due to govt. formats such expenses are not depicted hence entries made under the head of other exp. d) The AO had estimated gross profit without considering the same e) Audited P L account also shows direct as well as indirect exp. f) Even CIT(A) after considering the said addition of 3% reduced at 0.60% g) Praying for giving favour for allowing appeal 6. Per contra, the learned Departmental Representative submitted that the addition of 3% of the total of other expenses made by the Assessing Officer to the total income of the assessee has been reduced to 0.60% of the Net Profit by the learned CIT(A) which is also not correct, in the absence of necessary evidences and requested to restore the disallowance made by the Assessing Officer. 7. We have given our thoughtful consideration to the orders of the authorities below and also perused the material placed on record including paper-book filed by the assessee. Undoubtedly, the Assessing Officer made disallowance @ 3% of the total of other expenses and the learned CIT(A) determined the net profit at 0.60% on the total turnover of Rs. 27,93,02,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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