TMI Blog2016 (3) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... ease in the expenses on the basis of evidence, which has not been controverted by the ld DR. The assessee's manufacturing activities comes under the excise item and also had sales tax registration. The assessee's case is auditable in the income tax law and no qualifying remark had been made by the auditor on expenses claimed by it. The ld Assessing Officer has not brought out on record any material to substantiate his addition. - Decided in favour of assessee - ITA No. 339/JP/2014 - - - Dated:- 8-1-2016 - T. R. Meena, AM And Laliet Kumar, JM For the Appellant : Shri Kailash Mangal (JCIT) For the Respondent : Shri Ajay Somani (CA) ORDER Per T R Meena, AM This is an appeal filed by the revenue against the order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved by the order of the Assessing Officer, the assessee the matter before the ld CIT(A), who had deleted the addition by observing as under:- 4.3 I have considered the contentions of the appellant as well as assessment order. It is seen that the assessee has pointed out that the loans from the persons covered u/s 40A(ii)(b) were unsecured loans which are not comparable with secured loans taken from the bank. Further, for the bank loans, there are incidental charges viz. processing fees, insurance charges etc. and interest is levied by the bank on monthly basis which leads to higher rate of interest than interest rate of 11.75% mentioned by the AO. In view of above discussion and submissions of the appellant, the disallowance m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see had debited various expenses in the P L account i.e. power and fuel expense, travelling expenses and salaries and wages. As per the Assessing Officer these expenses had increased substantially compared to preceding year, therefore, he gave reasonable opportunity of being heard, which was availed by the assessee vide letter dated 29/11/2012. The assessee's reply has been reproduced by the Assessing Officer at page 5 and 6 of the assessment order for power and fuel expenses. The ld Assessing Officer had held that the assessee had failed to justify the increase in power and fuel expenses by producing documentary evidence to compare the petroleum price. The assessee has also installed new machinery to upgrade the technology. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtunity to the assessee. The assessee's reply has been reproduced on page 9 of the assessment order. After considering the assessee's reply, the Assessing Officer analysed the expenses with the sale and held that increase in salary and wages by 29.95% was found after giving increment to the employees. The assessee had claimed total salary during the year at ₹ 91.26 lacs against ₹ 70.22 lacs in immediate preceding financial year. The assessee had furnished only details of employees but failed to produce even a single employee for verification. During the year under consideration seven new employees were joined. They have submitted two lines joining report of three persons without any identity out of seven new employees. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the local conveyance expenses of ₹ 21,448/- paid for auto rickshaw, tempo charges which were evidences by claims of the employees were reimbursed to the employees. No expenditure has been found by the Assessing Officer as non-genuine and non-business purposes. Therefore, same are allowable U/s 37 of the Act. Accordingly he deleted the addition of ₹ 1,68,794/-. 7.2 He further held that under the head salary and wages the salary of the Director increased by 18 lacs and other employees by ₹ 3,03,764/-. The assessee had produced attendance register, salary register, resume of Director, joining report and resume of new appointees, forwarding letter to the banker for making salary payment to the employees etc. Though the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and surmises. The electric expenses were paid through account payee cheque at ₹ 1,23,33,940/- paid through banking channel to the AVVNL. The customer had paid less price compared to preceding year. The AR has drawn our attention on comparative chart of reduction in prices. The price of furnace oil increased from 18,300/- per M.T. to ₹ 28,548/- per M.T. of same grade and maximum purchase price paid during the year ₹ 30,832/- per M.T. Regarding increase in the travelling expenses, he argued that there was a recession, therefore, the company tried to explore new customer, satisfy customers and perform after sales services added efforts are needed to boost the sale. The ld Assessing Officer's remarks on travelling expen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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