TMI Blog2012 (11) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ld. DR for the revenue that there was no remand report available but the ld. CIT(A) has given clear finding that report was forwarded to the Assessing Officer and the Assessing Officer in his report has not rebutted the same - order of the ld. CIT(A)is confirmed. Disallowance of Expenses in full or part – Held that:- Expenses debited to profit and loss account in respect of telephone expenses, charity and donation, car expenses, rebate and discount, printing and stationery, labour welfare & cartage, accounting charges, traveling expenses, entertainment and salary confirmed the disallowance to 25% of the expenses for non production of vouchers – order of CIT(A) is confirmed. Profit margin – Held that:- Although Fall in gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents and produce the books of account during the assessment proceedings, which the assessee failed to furnish/produce. 3. That the ld. CIT(A) erred in law and on facts in deleting the addition of Rs. 21,77,500/- on account of valuation of building under construction by simply relying on the report of valuer dated 22.9.2009 without giving any cogent reasons and which was not produced before Assessing Officer even though the assessee appeared before Assessing Officer on 18.11.2009 and 25.11.2009. 4. That the ld. CIT(A) erred in law and on facts in restricting the disallowance on expenses to 25% of Rs. 3,21,626/- without giving any cogent reasons. 5. That the ld. CIT(A) erred in law in deleting the addition of Rs. 14,242/- made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for arriving at a particular figure of income so that the assessee could be enabled to appreciate the mental process leading to the assessment and the figures assessed. The order needs, to be a speaking order. The Assessing Officer took no pains in computing the income on the basis of the material available on record. In the case of A.C.I.T V. Smt. Bandana Roy ITAT Gauhati Bench reported in (2002) 77 TTJ (Gau) 66 it was held that where no specific defects in the books of account and vouchers maintained by the assessee could be brought on record and the remark of the Assessing Officer in this respect is only general in nature having no value in the eye of law. Further held that merely on the basis of DVO report without pointing out any spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer on this account. 4 .During appellate proceedings valuation report dated 22.9.2009 was also furnished and it was pointed out that report from competent valuer was obtained before the assessment but could not be filed during assessment proceedings because of the difficult law and order situation in the city. The ld. CIT(A) accepted this additional evidence and forwarded the same to the Assessing Officer to rebut the same but the Assessing Officer in his report did not point out any defect. The ld. CIT(A) observed that since the Assessing Officer has not been able to rebut the valuation report, therefore, he directed the Assessing Officer to accept the valuation made by the valuer at Rs. 8,22,500/- instead of value shown by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on report could not be filed because of disturbances in the City and in our opinion, this is a sufficient cause for not filing the report. In any case, the ld. CIT(A) had forwarded this report to the Assessing Officer for his comments. In case of Sargam Cinema V. CIT (supra) it is clearly observed that the matter could not be referred to DVO without pointing out defects in the books of account in case before us even if the books were not produced at least the Assessing Officer should have referred to the valuation officer. Even after that it was not done at atleast at the time when the ld. CIT(A) had forwarded the report for his remand he should have made some comments but nothing was done though it was contended by the ld. DR for the reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied. 12. On the other hand, the ld. counsel of the assessee submitted that the ld. CIT(A) has already restricted the disallowance to 25% which is more than reasonable. 13. After hearing both the parties we agree with the submissions of the ld. counsel of the assessee that the ld. CIT(A) has already confirmed the disallowance to 25% of the expenses for non production of vouchers. This disallowance is most reasonable and accordingly we confirm the order of the ld. CIT(A). 14. Ground No. 5 During assessment proceedings the Assessing Officer noticed that the assessee became proprietor of Sukhmani Packers from 1.1.2007. Before dissolution of the firm she was partner in the same firm. He further noticed that during the period 1.4.2006 to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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