TMI Blog2022 (10) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... d 27/03/2015 the disallowance of expenses under same head was made by the ld. AO @10%. There is no such any proper finding of lacuna for disallowance of the expenses @ 20%. Considering this there is no such any specific finding for addition, the same addition amount of Rs.953,484/- is liable to be deleted. Reopening of assessment u/s 147 - We find there is no infirmity in the order of the ld. CIT(A). The reopening of assessment u/s 148 is proper and as per the law. In the result the appeal of the assessee is dismissed. - I.T.A. No.02/Asr/2022 - - - Dated:- 30-9-2022 - Dr. M. L. Meena, Accountant Member And Sh. Anikesh Banerjee, Judicial Member For the Appellant : None For the Respondent : Ms. Amanpreet Kaur, Sr.DR OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61. That the appellant craves, leave to add, alter, amend or vary and/or withdraw any or all of the aforesaid grounds of Appeal or at time of hearing of the above appeal. 2. The brief fact of the case is that the assessee has primarily raised two grounds in his appeal. First one is the legal and another one is a factual ground. In factual ground the addition was made by disallowance @20% on travelling expenses which was claimed by the assessee amount to Rs.42,70,275/- in the P L a/c of the assessee. The addition was made @ 20% of the said expenses i.e. Rs.42,70,275/- whichis worked out amount to Rs.9,53,484/-. In the legal ground, the jurisdiction of notice u/s 148 was also challenged by the assessee before the revenue authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of at the time of completion of original assessment on 27.03.2015. However, the rationale of the quantum of the expenditure under the head travelling Expenses have not been explained at all. It is seen that travelling expenses claimed at Rs.42,70,275/- in relation to sales turnover of Rs.73.29 crore is unusually high as compared to the preceding two assessment years as depicted in the below chart. Assessment year Travelling Expenses claimed Turnover 2010-11 2636883 56.33 crore 2011-12 2369374 70.71 crore 2012-13 42702 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 10% of these expenses claimed by assessee firm. The explanation given by the counsel has been considered and after discussion he has agreed for disallowance of these unvouched expenses @ 10% of the expenditure claimed under these heads. Accordingly, a disallowance of Rs. 369600/- is made on account of unvouched expenses debited to the Profit and Loss Account and added back to the returned income of assessee firm. This disallowance was accepted to buy, though the books of accounts were duly audited and expenses were duly supported by vouchers but perished due to devastating floods in Srinagar. Even record of income tax submerged in water and the Income tax office remained in water almost thirty feet for a month together. The cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the points before the assessing authority. 6.1. In this case the AO had found that the assessee had not produced supporting evidence in respect of the expenditure booked to profit loss account. Here, the AO has got reason to investigate the genuineness of expenditure booked and to excavate the facts. As held by the Hon ble Supreme Court in the case of Raymond Woollen Mills Ltd. vs Income-Tax Officer And Ors.(Supra) sufficiency or correctness of the material is not at all a matter for reopening the assessment. Therefore, the AO has rightly re-opened the assessment to verify the genuineness of claimof the expenditure. Thus, the Ground no.2 is dismissed. 8. We heard the submission of the ld. Sr. DR, considering the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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