9911796707
TMI Blog2022 (8) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... olding the disallowance at Rs. 2, 00,000/-. 2. The learned CIT (Appeals) has decided identical matter in favour of the assessee on identical facts in their case in earlier years (A.Y. 2011-12, 2012- 13) and therefore should not have upheld the disallowance. 3. The appellant craves the leave to add, amend, alter, vary and / or delete, withdraw any or all of the grounds of appeal at or before the time of hearing." 3. The brief facts of the case are that the assessee is a firm engaged in the business of import of plastic scrap from European countries, USA and countries situated in UAE. During the course of assessment, the AO noticed that the assessee had debited following expenses, which have elements of personal and non-business natur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... general finding whereas in the concluding paragraph there is a specific finding that log books were not maintained and that some vouchers were not subject to verification being self made and lacking complete and proper address. In these facts, I do not find any infirmity in adhoc disallowance made by AO which is neither unjustified nor exorbitant nor unreasonable in quantum." 4. The assessee is in appeal before us against the aforesaid addition of 2 lakh made during the assessment proceedings. The counsel for the assessee submitted that the disallowance has been made on a purely ad-hoc basis, without finding any fault in the audited books submitted before the AO during the course of assessment proceedings. Accordingly, the AO has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of expenditure applying ad-hoc percentile on ground that some of expenditures were in cash and were supported only by self-made vouchers. It was noted that there had been no clear finding as to number of vouchers requiring denial of allowances with amount of expenditure and nature of defects therein or therewith. The ITAT held that since it was not case of revenue that any part of expenditure in question was either bogus or fictitious or same was not incurred by assessee wholly and exclusively for purpose of his business, ad-hoc disallowance in its entirety deserved to be vacated. In the case of Seal For Life India (P.) Ltd. v. DCIT [2018] 96 taxmann.com 645 (Ahmedabad - Trib.), ITAT held that ad-hoc disallowance could not be made from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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