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2018 (1) TMI 1447 - AT - Income TaxAddition on account of milling gain - HELD THAT:- AO being a quasi judicial authority ought to have recorded specific reason for making any addition in the hands of the assessee. The first appellate authority, whose powers are co-terminus with that of the Assessing Officer, could have deliberated upon the rights and liabilities of the assessee on the very fact that assessee could not attend the hearing because he was medically unwell and relevant evidence was also placed which was not considered by the CIT(A). We find that this addition is being made by the Department without any enquiry being conducted or without there being any material on record and, therefore, we are of the considered view that the addition made by the AO and confirmed by the CIT(A) is without any basis and liable to be deleted - delete the addition made on account of milling gain. Machinery repairing expenses debited under the head “machinery repairing expenses” - AO on examination of bills and vouchers relating to expenses, noticed that some of the expenses were not supported with verifiable vouchers and were in cash. - HELD THAT:- On a perusal of the written submission and the case record, we find that the business of the assessee is trading in food grains and producing Maida which is supplied to various biscuit manufacturers. It is common in factory set up that certain repairs and maintenance work are conducted for which vouching is not always possible. These expenses relate to the fundamentals of the assessee’s business and just because they were not vouched, there cannot be any addition. The practical aspects involved in relation to the type of business of the assessee, who is also a tax payer, should be taken into consideration by the Department and taking these facts in totality, we are of the considered view that such ad hoc addition without any basis cannot be sustained and hence liable to be deleted. Accordingly, the addition on account of machinery repairing expenses is deleted. - Decided in favour of assessee.
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