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2017 (12) TMI 615 - AT - Income TaxAddition of “Project Monitoring Expenses” and “Erection and Commissioning Charges” - whether the assessee has failed before the A.O to specify the reason of less profit this year although turnover went up substantially as compare to last year - Held that:- As perused all the records and gone through the order of the CIT(A) wherein the CIT(A) has rightly deleted the addition as the Assessing Officer made the estimated addition or ad-hoc addition without assigning any reason to that effect. Merely, on the basis of surmises, the Assessing Officer cannot make an addition when the assessee has given all the details about the expenses and the same was never doubted by the Assessing Officer at any point of time. CIT(A) rightly held that the Assessing Officer made estimated disallowances because of some expenses which had gone up, however, the Assessing Officer had not brought on record a single instance of expenses not being vouched properly or any of these expense being artificially inflated or being of a bogus nature, the CIT(A) further held that there was no allegation that the expenditure occurred out of any other activity and Assessing Officer did not bring on record any instance of the expenditure being used for purposes of the other business. The addition made by the AO was rightly deleted by the CIT(A) - Decided against revenue
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