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TMI Blog2022 (12) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... emanated from the order of Ld. Addl. Commissioner of Income Tax, Range-III, Jalandhar, date of order 29.12.2010. 2. The present appeal has been listed for hearing before us pursuant to order dated 28/07/2022, passed by the same bench of the Tribunal under section 254(2) of the Act, in MA No. 37/Asr/2019 in ITA No. 479/Asr/2016, whereby earlier order dated 21/05/2019, passed under section 254(1) of the Act was rectified & was recalled. The appeal was directed to be listed for hearing in that regard. When the appeal was called for hearing, no one appeared on behalf of assessee to represent his case. There is only application for seeking adjournment. But the reason of adjournment was not viable. The reason of adjournment is extracted as belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment was completed u/s. 143(3) of the Act on dated 29.12.2020 and assessed income of Rs. 4,82,47,915/-. The addition was made in different heads. The assessee challenged the order of the Ld. AO before the 1st Appellate Authority. After the appeal order the addition of Rs. 10,60,266/- is sustained. The details of additions are as follows:- a. Foreign Currency & Credit Card Expenses. Rs. 530,133/- b. Staff Welfare Expenses and Gift & Shagun Expenses Rs. 400,000/- c. Disallowance of Building Depreciation Rs. 79,386/- 4. Being aggrieved assessee filed an appeal before us. 5. We consider the order of the Ld. CIT(A) in paragraph 5.2 page 8 which is extracted as below:- 5.2 I have considered the observations of the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e justified. I am also of the opinion that the disallowance made by the Assessing Officer is not on ad-hoc basis but she has pointed out specific defects in the maintenance of bills and vouchers for the utilization of foreign currency and in respect of the expenses incurred through credit cards. However, keeping in view various decisions of the Honorable Jurisdictional ITAT on the subject whereby 10% disallowance out of foreign currency expenses has been held to be justified, I am of the opinion that the disallowance made by the Assessing Officer is quite excessive looking to overall facts of the case. I am further of the opinion that it will be fare and reasonable if the disallowance out of foreign currency utilization and credit card expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses were un-vouched. Such un-vouched expenses were mostly under the head conveyance. The CIT(A) reached the conclusion that the total of un-vouched expenses would not possibly come to Rs. 25,000. He, therefore, restricted the disallowance to Rs. 15,000." 12. Learned Representatives of the parties are heard on this issue. 13. It is apparent that the Tax Authorities below did not realise the practical difficulty of a businessman that it is not possible to obtain receipts from each and every taxi-driver for utilization of the conveyance. There are certain expenses for which vouchers, as expected by the Departmental Officer, cannot be obtained. Moreover, such lumpsum disallowance without pointing out the exact amount cannot be appreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 15,87,734/-) & added back with the total income of the assessee. In the observation of the revenue there is no under valuation of the assets. The assessee booked the expenses in capital account and reason of difference is explained before the revenue authorities. Also a copy of the valuation report from registered valuer of assessee is enclosed in APB pages 65 to 70 on which the clear reflection of assessee's own claim. The report of valuer Mr. V.K. Singhal is duly enclosed in APB 65 to 70. Considering this, the depreciation cannot be rejected on basis of this valuation report. So, the addition of Rs. 79,386/- is liable to be deleted. 7. Accordingly ground No. 1,3 and 4 are allowed, ground No. 2 is consequential in nature, ground N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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