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TMI Blog2022 (7) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 (11) TMI 995 - ITAT MUMBAI] and DCIT v. M/s EPCOT Securities (P) Ltd. [ 2011 (3) TMI 1615 - ITAT MUMBAI] . There is no dispute with regard to the fact that the disallowances made by the Assessing Officer are purely ad-hoc and has not specified the vouchers that were not available. Hence, in the absence of such findings, CIT(A) was not justified in confirming the addition. Therefore, the Assessing Officer is directed to delete the addition. Addition of expenditure was on account of renovation and replacing of existing worn-out damaged wooden flooring with new wooden flooring by treating it as capital expenditure instead of Revenue expenditure - HELD THAT:- The contention of the DR is that the assessee could not prove that he has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferring to cases decided by Hon ble ITAT Amritsar Bench in support of his judgment without quoting such cases in detail, the issues nature of expenses involved in such cases. He has also erred to appreciate that most of the expenses targeted by Ld. ITO like freight carriage, petrol lubricant, staff welfare expenses, travelling expenses, vehicle running maintenance expenses, uniform etc do not contain any personal element and cannot be subject to any disallowance on % basis. Further, TDS wherever applicable has been adequately deducted. 3. On circumstances and facts of the case, the worthy CIT (A) was not justified in upholding Ld. ITO s view that replacement of existing worn out wooden flooring by fresh wooden flooring was a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions were made into the plant and machinery at Rs. 29,91,833/-. He noticed that the assessee claimed excessive depreciation of amount of Rs.67,500/- and same was added into the income of the assessee. Lastly the Assessing Officer made addition of Rs. 8,714/- being the difference between the purchase price. Thus, the Assessing Officer assessed income of Rs.20,53,403/- against the returned income of Rs. 13,98,726/-. 4. Aggrieved, against this the assessee preferred an appeal before the Ld. CIT(A) who after considering the submissions partly allowed the appeal thereby the Ld. CIT(A) confirmed the disallowance of expenditure of Rs.1,02,350/-, disallowance of Rs. 4,76,068/- and deleted the addition of Rs. 8,714/-, thus, the Ld. CIT(A) p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are 2,10,661/- Telephone/Mobile Expenses 1,71,541/- Travelling expenses 3,59,060/- Vehicle Maintenance 1,03,090/- Total: 20,47,021/- Disallowing 5% of the above expenses, the Ld. ITO notes in his Asstt. Order at page 3, para 4.1 During the course of assessment proceedings, the assessee was required to produce supporting vouchers to substantiate these expenses. From the vouchers produced, it is observed that these expenses are not completely vouched and are not fully verifiable------ ------- From the above it is pertinent to note that vouchers supporting documents were actually produced before the Ld. ITO but in his opinion were not complete. It was pleaded before the worthy CIT(A) th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not available. But nevertheless these expenses are incurred wholly solely for business purposes. Hence the addition made by Ld. ITO sustained by worthy CIT(A) needs to be quashed. In support of my argument, reliance is placed on: a) Pearl Farben Chem(P) Ltd(ITA No.1122/Mum/2010) b) DCIT vM/s EPCOT Securities (P) Ltd.(ITA No.395/Mum/2009) 7. On the contrary, the Ld. Sr. Departmental Representative opposed the submission and submitted that the orders of the authorities below are well reasoned and based upon the correct appreciation of the fact 8. I have heard the Ld. DR and perused the material available on record. Apropos to ground nos. 1 2, it is contended on behalf of the assessee that during the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. v. ITD (ITA No. 333/Ahd/2011) The contention of the Ld. DR is that the assessee could not prove that he has not enjoyed enduring benefit of such expenditure. I find force into this contention of the Ld. Sr. DR that there is no material suggesting that expenditure did not give enduring benefit to the assessee in the absence of material that such expenditure was of a regular feature and was claimed in earlier years as well and did not give enduring benefit to the assessee. I do not see any reason to interfere in the finding of the Assessing Officer. This ground of assessee s appeal is rejected. 10. In the result, the appeal filed by the assessee is partly allowed. Order pronounced in the open court on 16.06.2022. - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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