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2016 (1) TMI 374 - ALLAHABAD HIGH COURT

2016 (1) TMI 374 - ALLAHABAD HIGH COURT - [2016] 382 ITR 152 - Disallowance made in the "consumable stores" - ITAT deleted the addition - Held that:- we find that there is an express finding given by the Assessing Authority as well as by the Ist Appellate Authority with regard to non-production of bills and vouchers and for not maintaining the stock register. In the absence of non-production of bills and vouchers, the Assessing Officer was justified in disallowing certain expenditure by 10%, whi .....

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ance of 5% in the facts of the case is justified. - Decided against assessee

Expenses attributable on the conveyance and telephone of the Directors of the assessee-company - should be included in the expenses of the assessee-company as held by ITAT - Held that:- nothing has been brought on record by the Department to indicate as to what was the direction given by the authority for the assessment year 2001-02. We are of the view that the expenses made by the assessee on telephone and c .....

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me Tax Appeal No. - 3 of 2016 - Dated:- 5-1-2016 - Hon'ble Tarun Agarwala And Hon'ble Vinod Kumar Misra, JJ. For the Appellant : Ashok Kumar ORDER We have heard Sri Ashok Kumar, the learned counsel for the appellant along with Sri Manu Ghildiyal, the learned counsel for the Income Tax Department and Sri V.K.Upadhya, the learned Senior Counsel assisted by Sri Ritvik Upadhya, the learned counsel for the assessee. The present appeal has been filed under Section 260-A of the Income Tax Act o .....

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account" had claimed a sum of ₹ 22,06,84,916/- under the head "manufacturing expenses" indicating it as consumable stores. During the course of assessment proceedings, the assessee was directed to file details in respect of the expenses claimed for and also justify them. The Assessing Authority, after examining the matter, came to the conclusion that the bills and vouchers and other supporting documents in relation to various expenses could not be produced. The Assessing Of .....

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eleted 20% of the expenses claimed under the said head. In appeal the Ist Appellate Authority affirmed the finding of the Assessing Authority but reduced the disallowance from 10% to 5% holding that this 5% would meet ends of justice. The Ist appellate authority also held that the bills and vouchers of the expenditure made were not produced nor the assessee had maintained the stock register. With regard to the telephone, vehicle and travelling expenses, the Ist Appellate Authority held that the .....

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e on the strength that there was increase in the turnover by 5% and the expenses under this head had gone down considerably. On the issue of telephone and conveyance allowance, the Tribunal held that the assessee's case was covered by a decision of the Gujarat High Court in Sayaji Iron And Engg. Co. Vs. Commissioner of Income Tax, (253) 2002 ITR 749. Having heard the learned counsel for the parties, we find that there is an express finding given by the Assessing Authority as well as by the I .....

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l has lost sight of the fact that the expenditure claimed under the head manufacturing expenses, which forms part of the "profit and loss account", showing expenses made by the assessee are required to be proved by production of bills and vouchers. In the absence of production of bills and vouchers, an inference can be drawn by the Assessing Authority that such expenses shown under this head were inflated or were not supported by any bills, vouchers or any other documentary evidence, w .....

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