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2019 (10) TMI 920 - ITAT JAIPURDisallowance of transportation expenses @ 10% - ad hoc disallowance was sustained by the CIT(A) to the extent of ₹ 1.00 lac on lump sum basis - HELD THAT:- D isallowance is made without considering the relevant facts. Further, when the transportation and freight expenses is inevitable in the assessee’s line of business then without conducting any enquiry or giving a finding, the payment made by the assessee is either bogus or excessive/inflated then an ad hoc disallowance made by the A.O. of the entire claim of transport expenses where the majority of the payment has been made through cheques is not justified. CIT(A) has also confirmed the disallowance to the extent of ₹ 1.00 lacs which is an ad hoc disallowance without considering the relevant facts on the issue, accordingly, the disallowance sustained by the ld. CIT(A) is deleted. Disallowance of soyabean expenses @ 20% - A.O. observed that the assessee has paid some of the expenses in cash which are below ₹ 20,000/- for which no supporting evidence is available with the assessee except self-made vouchers - HELD THAT:- The said expenditure is incurred on account of Pala and Bharai which means payment is made for loading and unloading of the goods. Though, the payment in such nature of expenditure is made in cash to the labourers, however, the labourers in a particular mandi are regular labourers working and not the strange persons to the traders in a particular mandi. Therefore, once the labourers are known and working almost regularly with the assessee and other traders then the details and particulars of the recipients should be mentioned in the vouchers. Even when these are regular workers working in the mandi then vouchers must have been got signed from the recipients. Since the entire payment is made in cash, therefore, the disallowance restricted by the ld. CIT(A) to 10% is proper and reasonable. Disallowance of wheat expenses - addition restricted by the CIT(A) to 10% from 20% - HELD THAT:- This issue is identical to the issue of disallowance of soyabean expenses being on account of Pala and Bharai i.e. loading and unloading of the goods, therefore, in view of my finding on account of soyabean expenses, 10% disallowance restricted by the ld. CIT(A) is proper and justified. Disallowance of administrative expenses - HELD THAT:- Depreciation on car cannot be disallowed on the ground of non-furnishing of vouchers or non-verifiable of the expenditure. The depreciation is a statutory allowance provided u/s 32 of the Act, therefore, the disallowance made by the A.O. and sustained by the ld. CIT(A) on account of depreciation on car is deleted. Telephone expenses are also not required to be proved by any voucher when the telephone bill itself is a proof. Even otherwise, this expenditure can be verified from an independent source. In absence of any verification conducted by the A.O. regarding the genuineness of the expenditure, the disallowance made and sustained by the ld. CIT(A) is not justified, the same is deleted. Office expenses - majority of the expenditure has been incurred through cheques except only one item of expenditure which is labour charges of ₹ 2,150/- for colour in office. All other expenses are duly supported by the bills of the vendor. It appears, without verifying the details of the expenditure, the A.O. has made ad hoc disallowance in a routine manner. Accordingly, the disallowance made by the A.O. and sustained by the ld. CIT(A) is deleted. Vehicle running and maintenance expenses, from perusal of the details of the expenditure, it is noted that the entire payment is made in cash and some of the payments are made for petrol and for others. No description is given in the details of the expenditure except some bill number is given. Therefore, when the entire expenditure is incurred in cash then the disallowance of 10% made by the ld. CIT(A) is on account of vehicle running and maintenance expenses is proper and justice - Appeal of the assessee is allowed in part.
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