Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 479 - AT - Income TaxAddition based on non-availability of vouchers etc. in support of expenses claimed in books of account - it is contended on behalf of the assessee that during the course of assessment proceedings the assessee was required to produce vouchers to substantiate the expenses from the vouchers so produced - HELD THAT:- As observed that the expenses were not completely vouched and were not fully verifiable. It was contended that the AO has made a sweeping statement without specifying the vouchers that were not available. The reliance was placed on the decision of the Tribunal in the case of Pearl Farben Chem (P) Ltd. [2010 (11) TMI 995 - ITAT MUMBAI] and DCIT v. M/s EPCOT Securities (P) Ltd. [2011 (3) TMI 1615 - ITAT MUMBAI]. There is no dispute with regard to the fact that the disallowances made by the Assessing Officer are purely ad-hoc and has not specified the vouchers that were not available. Hence, in the absence of such findings, CIT(A) was not justified in confirming the addition. Therefore, the Assessing Officer is directed to delete the addition. Addition of expenditure was on account of renovation and replacing of existing worn-out & damaged wooden flooring with new wooden flooring by treating it as capital expenditure instead of Revenue expenditure - HELD THAT:- The contention of the DR is that the assessee could not prove that he has not enjoyed enduring benefit of such expenditure. We find force into this contention of the Sr. DR that there is no material suggesting that expenditure did not give enduring benefit to the assessee in the absence of material that such expenditure was of a regular feature and was claimed in earlier years as well and did not give enduring benefit to the assessee - we see any reason to interfere in the finding of the AO. This ground of assessee’s appeal is rejected.
|