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2022 (5) TMI 505 - ITAT AHMEDABADDisallowance of expenses - Self made vouchers - cash expenditure - In the absence of any invoices/bills/vouchers, complete cash book etc., the genuineness and correctness of expenses could not be verified by the Assessing Officer - assessee is engaged in the transportation business but he could not submit any documentary evidences to substantiate his claim, 3% of the total other expenses - addition reduced to 0.60% of the Net Profit by the learned CIT(A) - HELD THAT:- The assessee could not able to establish as to why there is a drastic loss in the net profit comparing to the earlier assessment years. Further, the gross profit for the Assessment Year 2015-16 shown by the assessee is 13.23% and claimed a loss of (-) Rs. 56,074/- which is also not seems to be a correct proposition since no evidence is produced before us to establish the loss claimed by the assessee. The reason given by the assessee that the loss is due to depreciation on trucks, the same could have been explained before the lower authorities which has not been done by the assessee but the expenses incurred is not proved with proper evidences and mostly done by cash mode. After going through the order of the learned CIT(A), we are not in agreement with the order of the learned CIT(A) in estimating the profit at 0.60% on the net profit when the assessee has not produced any evidences on the claim of expenses. In the above circumstances, we are of the considered opinion that it would serve the interest of justice, if we restrict the disallowance to 1% of the total turnover of Rs. 27,93,02,001/-, i.e. Rs. 27,93,020/-. Thus, the Assessing Officer is directed to restrict the disallowance to 1% of the total turnover of Rs. 27,93,02,001/-, i.e. Rs. 27,93,020/- and pass appropriate order.
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