TMI Blog2012 (11) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is disallowed - ground raised by assessee is dismissed. Disallowance of addition on account of advertisement expenses – Held that:- Assessee is not able to substantiate the said expenditure by producing the evidence either before the AO or before CIT(A) or even before this Tribunal - No infirmity in the orders of the revenue authorities – ground raised by assessee is dismissed. Disallowance made u/s 40A(3) of the IT Act – Held that:- No disallowance u/s 40A(3) is required on account of meat, chicken and egg purchases in cash in excess of Rs. 20,000/- as they are daily expenses. However, the rent is not exempted under this rule - disallowance on account of the rent made in excess of Rs.20,000/- on particular dates as record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/- is completely arbitrary, unjustified, excessively high and illegal. 3. For that on the facts of the case, as per decisions of various Courts the net profit should have been estimated by CIT(A) on enhanced sale as against upholding the G.P. @44.82% which is completely unjustified, mala-fide and illegal. 4. For that without prejudice to ground no. 3, the Ld. CIT(A) should have allowed undisclosed business expenses against gross profit, which was wrongly denied to the appellant. 5. For that the claim of motor car expenses Rs.7,055/-and depreciation Rs.2,265/- was disallowed in assessment which has wrongly been uphold in appeal. 6. For that on the facts of the case, the Ld. CIT(A) was wrong in upholding the estimated disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les not recorded in regular books can be estimated 3 to 5% of total sales. Therefore he added an amount of Rs.10,64,294/- by observing as under :- On the day of survey, the sale price of food taken out of kitchen was of Rs. 63112/-, against which assessee had recorded sale of Rs. 53597/- (excluding sales tax). That means assessee had suppressed sale of Rs. 9515/- out of actual sale of Rs. 63112, on the day of survey. Percentage of suppressed sales for the day of survey comes to 15.01% (approx.). But Md. Ather in his statement dt. 3l/08/2007 stated that percentage of suppressed sale various 3 to 5% which apparently is in lower side. Considering the entire years sale, confession of the main working partners, nature of business of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he less recorded sales in a particular day is not justifiable on the part of the revenue. Therefore he requested to delete the addition on this issue. 7. On the other hand, the ld. DR appearing on behalf of the revenue relied on the orders of the revenue authorities. 8. After hearing the rival submissions and on careful perusal of materials available on record, the books of accounts of assessee are not rejected u/s 145(3) of the IT Act and the sales tax authorities have also assessed the sales as recorded by assessee. The estimated addition made by AO is not sustainable in the eyes of law in our view. Therefore we delete the addition of Rs.10,64,294/- on account of profit on estimated sales as arrived by AO and confirmed by ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partner of the firm and nature of business of the firm, the said expenditure of Rs.7085/- is being disallowed and added back to the total income of the assessee treating it as expenditure not incurred wholly and exclusively for the business of the assessee. Accordingly, depreciation claimed on motorcar of Rs.2265/- is also being disallowed and added back to the total income of the assessee. 10.1. On appeal the ld. CIT(A) has confirmed the same. 10.2. Aggrieved by this now the assessee is in appeal before us. 11. After hearing the rival submissions and on careful perusal of materials available on record, keeping in view of the fact that the ld. Counsel for assessee could not contradict the findings of the AO. Therefore we find no i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above issue are that while doing the scrutiny assessment the AO has disallowed an amount of Rs.96,933/- by observing that while verifying the books of accounts of the assessee an amount of Rs.4,84,663/- was made by assessee in case in excess of Rs.20,000/- on a particular day on account of meat, chicken and egg purchases and rent as mentioned in the assessment order at page no.6. 17.1. On appeal the ld. CIT(A) has confirmed the same. 17.2. Aggrieved by this assessee is in appeal before us. 18. At the time of hearing the ld. Counsel appearing on behalf of assessee has submitted that the disallowance made u/s 40A(3) of the IT Act is not justifiable since there is a specific exemption under Rule 6DD(j)(ii) of the IT Rules 1962 which i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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