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TMI Blog2022 (9) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... s regular business. CIT(A) has not discussed any worthwhile argument as to why, he has treated the expenses claimed by the assessee as bogus. It has been held in plethora of the judgments that any expenses that goes towards proper understanding/or management of owns business is an expense allow u/s 37 - The mandate does not permit the AO to step into the shoes of the business man and dictate him, how he has to manage the business. The authorities below did not point out any specific lacunae as regards to disallowance of expenses. It is noted that assessee is maintaining regular books of account which are subject to tax audit u/s 44AB of the Act. and that the authorities below had not pointed out any defect in the accounts as per the audited books of account of the assessee. DR did not file any contrary view before us. In the case of CIT v. M/s S.S.P. Pvt. Ltd. [ 2011 (7) TMI 574 - PUNJAB AND HARYANA HIGH COURT] the Hon ble Punjab Haryana High Court has observed that where audited books of account along with vouchers were produced by the assessee and thereafter the Assessing Officer has failed to show that the said expenditure was not for the business purposes, then such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 2,72,225/- 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 perfunctory manner without application of mind deserved to be deleted in toto and not in part. 4. The worthy CIT (A) has also erred in referring 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, After sales service, Repairs Renovation, printing stationary, Running maintenance do not contain any personal element and cannot be subject to any disallowance on % basis. 5. The appellant craves leave to add, alter, mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout appreciating the fact that Ld. ITO has not specifically pointed to any particular voucher or documentary evidence not made available to him; that the additions made by Ld. ITO were made in a routine perfunctory manner without application of mind deserved to be deleted in toto and not in part and that the worthy CIT (A) has also erred in making general reference to cases without quoting the citation of the any decision of ITAT Amritsar Bench in support of his judgment on adhoc additions pertaining to the issues nature of such as Freight, After sales service, Repairs Renovation, printing stationary, Running maintenance which do not contain any personal element and cannot be subject to any disallowance on % basis. The Ld. AR filed an identical written synopsis in all the three appeals and one such is reproduced as under: The appellant assessee is a running a business of automobiles/ batteries etc. For Asstt. Year 2013-14, the Ld. ITO completed the assessment under section 143(3) of IT Act. An addition of Rs. 3,82,190/- being 10% of expenses as per details below was made by him to the returned income of Rs.1,64,510/- which was partly upheld by the worthy C1T( A) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... element of any personal benefit accruing to partners of the firm. 6) That the books of account stand duly audited audit report furnished to Ld. ITO as required u/s 44AB of IT Act. The said report doesn t contain any adverse comment, inspite of the fact that the auditor is supposed to mandatorily mention of such comment, if he comes across any during his audit. However, to the dismay of appellant assessee, the worthy CIT(A), ignored this submission proceeded to sustain the addition fully Your honor,- An injustice has been done to appellant assessee in sustaining the addition to the extent of Rs.2,00,000/- on mere lumpsum basis which is neither backed by any argument or logic but only surmise conjectures. As stated in preceding paras the Ld. ITO has neither pointed out non-availability of any specific voucher nor made any enquiry or cross-verification to establish the veracity of the expenditure. Secondly the expenses have been wholly solely incurred for business purposes cannot not be added back fully or partly merely on basis of suspicion of leakage of revenue. Most importantly, the books of account of the appellant assessee stand audited u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc., by observing that the expenses claimed were not supported with the bills/vouchers, and some of them were supported by self made bills/vouchers. The ld. CIT(A) has observed that the appellant has not been able to produce the evidence to contradict the findings of the AO and he has only made bald submissions without any supporting evidence. However, the ld. CIT(A) has not mentioned the specific amount of expenditure for which the assessee has failed to produce bills/vouchers while upholding the finding of the AO. Although, the ld. CIT(A) has made a reference that ITAT Amritsar Bench has upheld such disallowances made by the AO to the extent of Rs. 10% but he has not mentioned even a single decision of the ITAT in this regard. The disallowances of expense by the AO without any specific finding with support of corroborative evidence to prove the contrary and merely mentioning that supporting bills/vouchers were missing or not produced would not be sufficient for the purpose of such addition to reject the claim of the appellant s business expenses. The ld. CIT(A) without verifying the facts of the case, and considering the written submission of the assessee confirmed the addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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