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TMI Blog2022 (6) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... T.A. No. 315/Asr/2018 - - - Dated:- 16-6-2022 - SH. KUL BHARAT, JUDICIAL MEMBER Appellant by : None (Written submission) Respondent by : Sh. Manpreet Singh Duggal, Sr, DR ORDER Per Kul Bharat, JM The appeal by the assessee is directed against the order dated 28.02.2018, passed by the Ld. Commissioner of Income Tax (Appeals)-2, Jalandhar (Camp office at Srinagar), pertaining to the Assessment Year 2013-14. 2. The assessee has raised the following grounds of appeal: 1. On circumstances and facts of the case, the worthy CIT(A) has erred in sustaining a part of the addition to the extent of Rs. 2,19,785/- out of Rs. 3,29,677/- made by Ld. ITO on the ground of non-availability of vouchers etc. in support of expenses claimed in books of account. 2. The worthy CIT(A) has erred in partly upholding the action of Ld. ITO as stated in (1) above without appreciating the fact that Ld. ITO has not specifically pointed to any particular voucher or documentary evidence not made available to him. 3. On circumstances and facts of the case, the worthy CIT(A) has erred in not appreciating the fact that the additions made by Ld. ITO were made in a routine per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. @ of 15%. Thus, the Assessing Officer made disallowance of Rs. 3,29,677/- and added this into the income of the assessee. 4. Aggrieved, against this the assessee preferred an appeal before the Ld. CIT(A) who after considering the submissions and material placed before him sustained the addition to the extent of 10% of the expenses. Thus, the appeal of the assessee was partly allowed. 5. Aggrieved, against this the assessee is in appeal before this Tribunal. At the time of hearing no one attended the proceedings on behalf of the assessee, however the assessee has filed written arguments, therefore, the appeal is taken up for hearing in the absence of assessee and is being decided on the basis of material available on record. 6. The only effective ground is against sustaining the addition made on account of ad-hoc disallowance of the expenses. The assessee has filed written arguments for the sake of clarity, the written arguments of the assessee are reproduced as under: Written Arguments before Hon'ble ITAT in respect of APPEAL NO. ITA 315/Asr/2018 M/S ABDUL SAMAD SONS, H.S.H STREET, SRINAGAR KASHMIR-ASSTT. YEAR 2013-14 Your Honour, Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in absolute figures amount to 1,89,757/-. It is against this addition sustained by worthy CIT(A) that the appellant assessee is in appeal before your honors. NOW THE ARGUMENTS The Ld. ITO made the addition on two reasons: a) That net profit ratio of the assessee has fallen to 0.18% in impugned assessment year compared to from 0.37% in the immediately preceding assessment year(page 3 line 8 counting from below of Asstt. Order) b) That all vouchers/documentary supports are not available. As far as first reason is concerned, The Ld. ITO as well as CIT(A) was apprised that the comparison resorted to by Ld. ITO is not reliable because net profit for AY 12-13 includes, a one-off transaction in the form of profit from sale of land amounting to Rs. 9,24,635/ he should take it out from net profit of Asstt. Year 2012-13 to arrive at the comparable figures. Your honor, it is an a fact that comparison should be made between two comparable figures. As such while making comparison of net profit rates for AY 12-13 AY 13-14, the above profit from sale of land should have been excluded to reflect a true and fair view of the affairs of business. A genuine comparison of fig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 301,318.00 0.08% 175,406.47 0.07% 0.01% Slight increase due to increase in cost 3 Vehicle Maintenance 396,108.00 0.11% 326,000.00 0.08% 0.03% Slight increase due to increase in cost 4 Misc. expenses 23,359.00 0.01% 55,663.00 0.02% - 0.01% In fact expenses have Reduced 5 Shop expenses 190,874.00 0.05% 112,910.00 0.04% 0.01% Slight increase due to increase in cost 6 Telephone Expenses 81,834.00 0.02% 120,917.00 0.05% - 0.03% In fact expenses have Reduced 7 Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrary, the Ld. Sr. Departmental Representative opposed the submission and submitted that the disallowance was made on account of non furnishing of the vouchers and bills. Therefore, the Ld. CIT(A) was justified on confirming the addition. 8. I have heard the Ld. DR and perused the material available on record. We find that the Ld. CIT(A) has partly allowed the appeal by observing as under: 4.2 I have perused the assessment order as well as submissions made by the appellant and find that a disallowance of Rs. 3,29,677 has been made by the AO at the rate of 15% of the total expenses claimed under the heads- Travelling and tours, loading and unloading, vehicle maintenance, miscellaneous expenses, discount allowed, staff welfare, freight and carriage, electricity and water expenses. The addition has been made by the AO on the ground that some of the expenses claimed were not supported with bills/vouchers, most of them have been paid in cash and element of personal usage cannot be ruled out. The disallowance has been made at the rate of 15% of the total expenses claimed. 4.3. The appellant has stated that the expenses have been incurred for the business purposes only, hen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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