TMI Blog2017 (8) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is not sustainable in the eyes of law particularly when the audited books account and the balance-sheet have not been rejected by the Assessing Officer so the addition on the basis of estimation is not permissible on the flimsy ground that some of the bills and vouchers were handmade and most of the payments were made in cash particularly when all these documents have been duly audited and have not been disputed by the Assessing Officer. As the assessee himself had shown profit at 9.9 per cent. and has been regularly maintaining the books of account in the regular course of business duly audited under section 44AB, the Assessing Officer as well as the Commissioner of Income-tax (Appeals) have exceeded their powers to disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 3,82,813 (b) Incentive to staff ₹ 1,95,500 (c) Employer s contribution to the provident fund ₹ 41,368 (d) Shortage deduction for want of debit note ₹ 2,486 3. That the learned Commissioner of Income-tax (Appeals) is not justified in sustaining the addition of ₹ 6,22,167 as detailed above. 4. That the learned Commissioner of Income-tax (Appeals) having appreciated in page No. 8, paragraph N of his order that it is true that due consideration needs to be given by the Revenue to the important fact that the acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it shown in the audited profit and loss account and certified by the tax auditor to be correct cannot be ignored. 5. That the comparable cases of the Income-tax Appellate Tribunal accepting lesser margin of profit should have been accepted by the authorities below. 6. That it is settled law that when two views are reasonably possible interpretation beneficial to the assessee should be adopted (Union of India v. Onkar S. Kanwar [2002] 258 ITR 761 (SC)). 7. That the statement of facts and the grounds of appeal filed before the Commissioner of Income-tax (Appeals) may kindly be considered as the part of the grounds of appeal. 8. That the other grounds if any will be urged at the time of hearing of appeal. 2. Briefly sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ives of the parties to the appeal gone through the documents relied upon and orders passed by the Revenue authorities below in the light of the facts and circumstances of the case. Grounds Nos. 1, 2 and 3 6. The Assessing Officer while noticing that an amount of ₹ 76,56,258.53 was debited in the profit and loss account under the head fuel and lubricants and to prove the same, the assessee has only placed on record the hand-made bill and vouchers in some instances and in large numbers, payments were found to be made in cash, the Assessing Officer held the genuineness of the impugned expenses as not ascertainable and proceeded to disallow 10 per cent. of ₹ 76,56,258.53 computed at ₹ 7,65,625 and made an addition there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the learned Commissioner of Income-tax (Appeals) as per the submissions made by the assessee. 9. However, the learned Commissioner of Income-tax (Appeals), even after discussing the settled principles of law relied upon by the assessee that, if there is no challenge to the transaction represented by the entries then it is not open to the Revenue or other side to contend that what is shown by the entries is not real state of affairs as has been held by the hon'ble Gujarat High Court in CIT v. Amitbhai Guvantbhai [1981] 129 ITR 573 (Guj) proceeded to restrict the disallowance on fuel and lubricant from ₹ 7,65,625 at l0 per cent. to ₹ 3,82,813 at 15 per cent. 10. When the return of income has been filed with sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
