TMI Blog2016 (1) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... essee-company, therefore, no ad hoc disallowance can be made. Since the assessee is a partnership firm, the element of personal use of vehicle cannot be ruled out. We are, however, of the view that the disallowance of expenditure of ₹ 20,000/- is on higher side. We accordingly reduce the same to ₹ 10,000/-. Addition under the head “repair and maintenance and bills and vouchers for the same were self-made and unverifiable in nature - Held that:- Assessing Officer has specifically pointed out that the bills and vouchers for repair and maintenance are self-made vouchers and are unverifiable in nature. Before the ld. CIT(A), the assessee has not placed any evidence to prove the genuineness of the claim. Even before us, no sample voucher is filed, wherefrom mode of preparation of voucher can be evaluated. Since the assessee has made a particular claim of expenditure, onus is upon the assessee to prove its genuineness. Self-made vouchers for entire expenses will not serve the purpose. We are accordingly of the view that the Revenue has rightly made the disallowance having concluded that the bills and vouchers maintained for repair and maintenance expenses are not open for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhoc disallowance of ₹ 20000/- out of vehicle in use expenses. 6. That the Ld. CIT (Appeals) has erred in law and on facts in confirming an addition of ₹ 14198/- being notional disallowance of interest on borrowed fund u/s 36(1)(iii) of the IT. Act. 7. That the Ld. CIT (Appeals) has erred in law and on facts in confirming an adhoc disallowance of ₹ 250000/- out of repair and maintenance expenses. 8. That the Ld. CIT (Appeals) has erred in law and on facts in treating sale of agriculture land to be a non-agricultural land and confirming an addition of ₹ 1563000/- on this account. 9. That the Ld. CIT (Appeals) erred in law and on facts in not properly looking into the facts of brought forward loss and observing that the issue has already been considered by the A.O. U/s 154 in as-much-as the full claim of the appellant in respect of brought forward loss has not been allowed by the A.O. 2. Grounds No.1 to 3 are general in nature and need no independent adjudication. 3. So far as ground No.4 is concerned, we find that the Assessing Officer has made disallowance of ₹ 2 lakhs out of transportation charges having noted that the transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity to the assessee to justify the transportation charges by placing relevant evidence, but the assessee could not file the same and the ld. CIT(A) has accordingly made disallowance of ₹ 48.26 lakhs having invoked the provisions of section 40(a)(ia) of the Act. Since the assessee was given sufficient opportunity to justify its claim, no notice of enhancement was required. 7. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that undisputedly the Assessing Officer has made disallowance of ₹ 2 lakhks out of transportation charges on ad hoc basis having noted that the expenditures are not open for verification. But when the matter was travelled to the ld. CIT(A), the ld. CIT(A) has examined the issue having given opportunity to the assessee to produce the relevant evidence, but the assessee could not place sufficient evidence to justify the expenses and its claim of non-deduction of TDS. The ld. CIT(A) accordingly made disallowance of the entire payment of ₹ 48.26 lakhs having invoked the provisions of section 40(a)(ia) of the Act. 8. From a careful perusal of the order of the ld. CIT(A), we do no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance having noted that the assessee has not established that the investment of ₹ 1,41,980/- in shares was made out of surplus funds. 14. Now the assessee is before the Tribunal, but no evidence is filed to justify that this investment was made out of surplus funds. Since the assessee has made payment on borrowed funds, disallowance @ 10% on investment in sister concern was rightly made by the ld. CIT(A). Accordingly we confirm the order of the ld. CIT(A) on this issue. 15. Apropos ground No.7, it is noticed that the assessee has debited ₹ 60,25,774/- under the head repair and maintenance and bills and vouchers for the same were self-made and unverifiable in nature. Therefore, the Assessing Officer has made disallowance of ₹ 2.50 lakhs. 16. Aggrieved, the assessee preferred an appeal before the ld. CIT(A) with the submission that the books of account are regularly audited, therefore, the disallowance should not have been made. But before the ld. CIT(A), the assessee has not filed any evidence in support of its claim. The ld. CIT(A) accordingly confirmed the disallowance. 17. Now the assessee is before us and during the course of hearing, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cultural land. The ld. CIT(A) was not convinced with the contention of the assessee and he accordingly confirmed the order of the Assessing Officer. 22. Now the assessee is in appeal before the Tribunal and during the course of hearing, the ld. counsel for the assessee has filed an affidavit of the assessee along with notification of the State Government defining the boundaries of Kanpur city. The ld. counsel for the assessee has further contended that as per notification, Village Bithoor, in which the land is situated, do not fall within the boundary of Kanpur, therefore, the land is outside the limit of 8 KM from the municipal limit of Kanpur. Thus, no capital gain can be computed on the transaction of the said agricultural land. 23. The ld. D.R. has submitted that in order to ascertain the location of the land, the Assessing Officer has called a report from the Tehsildar and the Tehsildar has categorically stated that the impugned land is situated within 8KM from the municipal limit of Kanpur and having relied upon the report of the Tehsildar, the Assessing Officer has rightly computed the long term capital gain. 24. Having carefully examined the orders of the lower author ..... X X X X Extracts X X X X X X X X Extracts X X X X
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