9911796707
TMI Blog2024 (1) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance u/s. 40A(3) and disallowance of prior period expenses. The contention of the Ld. AR is that these expenses incurred by way of cash and prior period expenses have already been produced before the Ld. AO wherein it is deemed that the Ld. AO after considering the same has made an ad-hoc disallowance of 10% on the total expenses claimed by the assessee. We are of the opinion that when an ad-hoc disallowance of 10% has been made by the Ld. AO, no further specific disallowance can be made under any other provisions of the Act. We therefore find merit in the argument of the Ld. AR on this issue of disallowance u/s. 40A(3) and prior period expenses are beyond the scope of rectification u/s. 154 of the Act when the Ld.AO has thoughtfull ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 13/1/2022 by determining the total income at Rs. 71,42,057/- thereby making an addition of Rs. 2,94,503/- towards disallowance of freight charges u/s. 40A(3) of the Act and Rs. 83,184/- towards disallowance of prior period expenses. Aggrieved by the above additions, the assessee filed an appeal before the Ld. CIT(A)-NFAC. 3. On appeal, the Ld. CIT(A)-NFAC considering the submissions made by the assessee, upheld the order of the Ld. AO by dismissing the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before us by raising the following grounds: 1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case. 2. The Ld. CIT(A) ought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not disputed by the assessee, no further specific disallowance can be made against any other provisions of the Act. The Ld. AR therefore pleaded that the Ld. AO ought to have considered the disallowances arising out of section 40A(3) and prior period expenses and therefore prayed that the rectification order of the Ld. AO be set-aside. 6. Per contra, the Ld. Departmental Representative relied on the order of the Ld. Revenue Authorities and argued in support of their decision. 7. We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. Admittedly, the Ld. AO in his original assessment order dated 23/12/2018 passed u/s. 143(3) of the Act has disallowed a sum of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
