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TMI Blog2023 (4) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... during relevant financial period was more and the quantum of disallowance is very small in comparison to the turnover. Therefore when the assessee has successfully demonstrated that the expense has been incurred wholly and exclusively for the purpose of business of assessee and the AO has not point out any specific defect or deficiency therein then the disallowance cannot be made on ad-hoc basis without any specific allegation merely on the basis of general remarks and observations - See SHRI KAILAS CHAND AGRAWAL case [ 2022 (4) TMI 671 - ITAT RAIPUR] as followed - Decided in favour of assessee. - ITA No.5953/Del/2019 - - - Dated:- 13-2-2023 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbers of vouchers requiring denials of allowances with the amount of expenditure and nature of defects therein or therewith, moreover the department could not bring out any depreciative material on record to substantiate it conclusion as logical. The learned AR vehemently pointed out that neither the Assessing Officer nor the Ld. CIT(A) has brought on record any positive adverse material against the assessee to controvert the genuineness of expenditure therein claim to have been incurred by the assessee wholly and exclusively for the purpose of its business did not inspire any confidence, nor it is a case of revenue that any part of expenditure in question was either found to be bogus for fictitious, nor was found to have not been incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Labour Welfare 3,18,643 5 Motor Cycle running 35,670 6 Salary Wages 30,41,623 Total 1,18,55,252 7.2. During the course of hearing, Ld AR claimed that, the solitary basis for making and sustaining the aforesaid disallowance of expenditure by the lower tax authorities was that, the some of the aforementioned expenditure were in cash and were supported only by self-made vouchers in the absence of third-party evidence. 7.3. Our careful consideration of assessment records and the records of appellate proceedings it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture by the lower tax authorities, and for the reason, the ad-hoc disallowance carried out in a most arbitrary manner could by no means be held to be justified. 7.5. Our aforesaid view is fortified by the judgment of the Hon'ble High Court of Madras in V.C. Arunai Vadivelan Vs ACIT (TCA No 612 of 2019 dt 05/02/2021), wherein the lordships has held para 7 as; Given the nature of the industry in which the assessee operates, we can take judicial notice of the fact that, computer generated vouchers may not always be issued by the transporters unless they are an organization owning a large fleet and If the Assessing Officer had any doubt with regard to the genuinity of any one of the vouchers produced he could have drawn sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al on record to substantiate to its conclusion as logical. In the present case the assessee has successfully demonstrated that his turnover during relevant financial period was Rs. 111,31,85,086/- and the quantum of disallowance is very small in comparison to the turnover. Therefore when the assessee has successfully demonstrated that the expense has been incurred wholly and exclusively for the purpose of business of assessee and the Assessing Officer has not point out any specific defect or deficiency therein then the disallowance cannot be made on ad-hoc basis without any specific allegation merely on the basis of general remarks and observations. Therefore, respectfully following the order of coordinate Bench of Raipur in the case of Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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