TMI Blog2014 (1) TMI 1911X X X X Extracts X X X X X X X X Extracts X X X X ..... e - Decided in favour of assessee. - ITA No. 361/Agra/2013 And C.O. No. 01/Agra/2014 in ITA No. 361/Agra/2013 - - - Dated:- 31-1-2014 - Bhavnesh Saini, Member (J) And Pramod Kumar, Member (A) For the Appellant : Shri Athesham Ansari, Jr. D.R. For the Respondents : Shri Ashok Vijay Wargiya, C.A. ORDER Pramod Kumar, Member (A) 1. This appeal and Cross Objection are directed against the order dated 25.09.2013 passed by ld. CIT(A) in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for A.Y. 2010-11. The grievances raised in the appeal as also in the Cross Objection, which are interconnected, and which we are taking up together, are as follows:- 2. The ground raised by the A.O. in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he absence of convincing documentary evidences, the entire expenditure cannot be allowed as deduction either. It was in this backdrop the A.O. has disallowed ₹ 31,00,000/- and added the same back to the income. 5. Aggrieved, the assessee carried the matter in appeal before the ld. CIT(A). While the ld. CIT(A) upheld the grievance of the assessee in principle to the effect that such ad hoc disallowance cannot be made on the facts and circumstances of the case, he confirmed the disallowance to the extent of ₹ 1,00,000/- by inter alia observing as under:- I have perused assessment order, written submission, oral arguments put forth before me and decisions relied upon by the Ld. AR of the appellant and carefully considered and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, Gwalior and Talbehat. The percentage of material consumption to the gross receipts was 86.57% as against 86.76% of preceding year. Simultaneously, the gross profit ratio was also increased for Gwalior from 13.24% to 13.43% and combined gross profit ratio for Gwalior and Talbehat was also increased from 13.41% to 13.43%. In support of this contention, he has submitted copy of audited contract and profit loss account, detail of purchases and expenses for the year under consideration as well as preceding year. He has relied upon the decision in the case of ITO Vs. Hitesh Kumar Panchori (2008) 113 TTJ (Jodh.) 357. He has contended that, since the material consumption was reduced and trading results was progressive i.e. better than precedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned disallowance. The mere fact that some of the vouchers were self-made cannot be a reason enough to disallow the expenses on ad hoc basis. It was open to the A.O. to disallow expenses to the extent he is not satisfied with vouchers. But even in such a case he is to set out the cogent reason for doing so. We have also noted that in the immediately preceding year this very Bench of the Tribunal has deleted the similar disallowance in assessee's own case by observing as follows:- 9. That takes us to the ground No. 3 in appeal as also ground No. 3 in cross objection which are inter connected and to be taken up together. So far as these grievances are concerned, we find that the Assessing Officer had disallowed ₹ 1,50,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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