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TMI Blog2016 (3) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ii. Out of telephone expenses Rs. 57,988.00 iii. Out of traveling expenses Rs.3,92,660.00 iv. Disallowance of Depreciation Rs.1,67,608.00 v. Legal & Professional Expenses .. (1,85,000 (out of 2,17,000 claimed) vi. Disallowance u/s 40 a(ia) Rs.2,56,000.00 vii. Difference in Capital A/c Rs.1,25,030.00 2. That the authorities below failed to appreciate the material evidences brought on record and chose to rely on issues which were irrelevant and immaterial. 3. That the authorities below gave a verdict which was one sided, imaginary and altogether irrelevant without appreciating the actual and existing facts and circumstances of the case read with the situation that there was great financial crisis on account of fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n behalf of the assessee on the appointed date of hearing. Before this, the appeal was fixed for hearing on 16/12/2015. On this date, A.R. Shri Abhinav Mehrotra, Advocate made a request for adjournment on the plea that he is out of station. On his request, the hearing was adjourned to 21/01/2016 and the date of hearing was pronounced in the open court. In spite of this, on 21/01/2016, none appeared on behalf of the assessee and there is no request for adjournment also. Prior to this also, the appeal was fixed for hearing on several occasions and on each of these occasions, request was made by A.R. for adjournment and adjournment was granted by the Bench to the assessee. Considering all these facts, the appeal was heard ex-parte qua the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he audit report in Form No. 3CD is also a bland report and in most of the columns the auditor has simply mentioned nil or not applicable. In item no. 11 the auditor has mentioned method of accounting as mercantile except for commission, incentives and credit card notes but no such items were found debited or credited in the profit and loss account. It is, therefore, held that the AO was justified in rejecting the books of account. Further, in view of the gross profit rates of 6.88% and 7.44% declared by the appellant in preceding two years the gross profit rate of 5% applied by the AO in respect of business turnover of the appellant is more than reasonable. Under the circumstances, addition of Rs. 9,30,587/- made by the AO is confirmed. Gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an expenditure, he has to establish that the expenditure was in fact incurred and the same was for business purposes. When the assessee has not furnished the copy of passport of self and family members and has not explained the purpose of travel, it cannot be accepted that the expenses incurred are for business purpose. Hence, on this issue also, we find no infirmity in the order of learned CIT(A) and decline to interfere with the same. 5.4 The next issue is regarding confirming of disallowance of Rs. 1,67,608/- on account of depreciation. It is noted by the Assessing Officer in the assessment order that as per copy of ledger account of furniture filed by the assessee, all the payments to the tune of Rs. 64,46,016/- towards addition in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) has allowed part relief of Rs. 32,000/- being the amount paid to Arsan and Company, Chartered Accountants and the auditor of the assessee. Regarding the balance amount of Rs. 1.85 lac, it is noted by CIT(A) in Para 7.1 of his order that it is not known as to whether the expenses have been incurred for business purpose and are of revenue nature. Considering the facts of the present case, we find no infirmity in the order of CIT(A) on this issue also. 5.6 The next issue is regarding disallowance of Rs. 2.56 lac u/s 40a(ia) of the Act. We find that it is noted by CIT(A) in Para 8.1 of his order that the assessee is a specified person as per explanation to section 194C as the assessee was liable to get his accounts audited u/s 44AB for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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