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2019 (2) TMI 791 - AT - Income TaxDisallowance of cash expenses - non submission of invoices/vouchers for these expenses - CIT(A) upheld the disallowance of expenses to the tune of 5% of these expenses - assessee is engaged in the business as a clearing , forwarding and shipping agent - Held that:- The business remaining the same in both AY 2013-14 and AY 2014-15 there is no plausible explanation for not incurring these expenses for AY 2014-15. The assessee in any case has not submitted any invoices/vouchers for these expenses for AY 2013-14 even before us while for AY 2014-15 , the assessee duly submitted invoices/vouchers before the AO and in our considered view, the matter need to be remitted back to the file of the AO for de-novo adjudication of this issue after giving the assessee an opportunity of being heard in accordance with principles of natural justice in accordance with law. The assessee is directed to produce all relevant invoices/bills/ vouchers before the AO in set aside de-novo proceedings and also to provide justification for incurring these Documentation Expenses and Transportation Expenses in this year under consideration which was stated to be not incurred in immediately succeeding year i.e. AY 2014-15. The Revenue appeal is allowed for statistical purposes on this issue Disallowance of reimbursement of the expenses - assessee did not submit requisite details before the AO which led the AO with a view to check leakage of revenue to disallow 5% of these expenses - Held that:- We have observed that the assessee is clearing , forwarding and shipping agent. The assessee claimed net agency commission from its clients and also claimed reimbursement of the expenses. The assessee did not filed requisite details before the AO. The assessee has filed details of these expenses before us which was stated to have been claimed as reimbursement of expenses from its clients. The assessee has also filed some of the bills raised by it on its various clients to make home its point that these are merely reimbursement of expenses. The assessee has also contended that profit element embedded in these reimbursement of expenses to the tune of ₹ 13,08,911/- was offered for taxation and has already suffered taxation . The P&L account is placed on record in file. These details required verification and with a view to render complete justice to both the parties, it is considered necessary and fit to restore the matter back to the file of the AO for making proper verification - Appeal of the Revenue is allowed for statistical purposes
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