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TMI Blog2014 (12) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-08. It has been claimed that the following substantial questions of law would arise for determination before this Court. (i) "Whether on the facts and in the circumstances of the case the learned ITAT is right in law in deleting the addition made on account of in-genuine expenses as the assessee failed to substantiate the same despite giving opportunity to explain." (ii) "Whether on the facts and in the circumstances of the case learned ITAT is right in law in recording the perverse findings contrary to the evidence on record." It would be apropos to narrate the facts which have given rise to the present appeal. The assessee had filed a return on 21.10.2007 by declaring an income at of Rs. 5,72,340/- against a gross receipt of Rs. 1.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,578/- to the total income was made and initiation of the penalty proceedings under Section 271 (1) (c) of the Act was also ordered. Besides disallowing the aforementioned expenses the Assessing Officer also did not accept the contention of the assessee in granting the benefit under various other heads i.e. (i) expenses on account of site rent to the tune of Rs. 11,14,055/-, which assessee was not able to prove and accordingly on fair and reasonable basis the Assessing Officer disallowed a sum of Rs. 1 lac and the said income was added to the assessee's total income. (ii) expenses of Rs. 2,26,232/- on account of personal uses expenses the Assessing Officer only caused addition of Rs. 37,705/-. (iii) expenses amounting to Rs. 3,03,853/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed appeal of the assessee by maintaining the addition of Rs. 38,94,766/- out of the total addition of Rs. 60,01,578/- as assessed by the Assessing Officer, whereas, the other additions were upheld. Both the revenue and the Assessee assailed the order of Commissioner by filing two separate appeals. The appeal filed by the revenue was numbered as ITA No.486/chd/2011 and that of the assessee was numbered as ITA No.356/chd/2011. The Income Tax Appellate Tribunal vide its order dated 10.5.2013 allowed the appeal of the assessee and dismissed the appeal of the revenue. Learned counsel for the revenue has submitted that the order of the ITAT is erroneous, and perverse in as much as, the ITAT has not appreciated the order of the CIT in its c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it rate of the assessee for the assessment year 2006-07 but as well as of the subsequent year 2008-09 which had been accepted by the assessing officer. While accepting expenses claimed by the assessee in respect of the same kind of work got done from various firms. We have examined the order of the Income Tax Appellate Tribunal and find that it is not only based upon the appreciation of evidence but is also supported by a plausible reasoning. For sake of reference relevant judgment of Income Tax Appellate Tribunal is extracted herein below:- We have heard rival submissions and have carefully perused the entire material on record. Both the parties have stuck to their original stand and have reiterated similar arguments which were taken bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee that its claim of having incurred expenses towards hoarding, flex structure and paint were a necessary part of business being direct expenses. The ITAT rejected the claim of the assessee with regard to the other disallowance. It is also a matter of record that the account books submitted by the assessee were not rejected by the assessing officer. Counsel for the revenue has not cited any judgment in support of his case, thus the discretion exercised by the tribunal is based on relevant consideration and does not suffer from any legal infirmity warranting interference by this Court. We find no reason to differ with the opinion recorded by the learned Tribunal and thus, the question of law sought to be determined by this Court is answ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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