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2022 (1) TMI 90 - AT - Income TaxDisallowance to 2% of cost of material - assessee has failed to discharge it's onus as per section 37 - HELD THAT:- All the necessary particulars pertaining to these three heads of material cost, construction and other expenses involving varying sums. It is an admitted fact that the CIT(A) has simply reproduced assessment findings while restricting these three heads of disallowance(s) to a paltry percentage ranging between 1 to 2% (supra). The fact also remains that both the learned lower authorities are fair enough in not pinpointing any kind of abnormal trend in the assessee's corresponding expenditure claims as well. Faced with this situation and in larger interest of justice, we are of the opinion that the Assessing Officer's action disallowing 20% of cost of material, 10% of construction and other expenses involving disallowance of 28,19,8.54 and 6 (in crores) deserved to be partly upheld to the extent of 50% thereof on lumpsum basis with a rider that the same shall not be treated as a precedent. We make it clear that we have partly reversed the CIT(A)'s findings under challenge and restore the three impugned disallowances to the extent of 50% of the corresponding sums added in the assessment order. Necessary computation shall follow as per law.
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