TMI Blog2016 (4) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... e bulky and which needs to be transported to various places. Considering the nature and size of business, we are of the opinion that the disallowance made by the Assessing Officer is at higher side. During the course of hearing, the Authorised Representative of the assessee requested for scale down the disallowance made by the Assessing Officer. The Ld. D.R. on the other hand did not object for the proposal. Therefore, to meet the ends of justice, we direct the Assessing Officer to disallow 5% of carriage inward expenditure. Accordingly, we direct the Assessing Officer to disallow 5% of expenditure under the head carriage inwards. Disallowance of depreciation on motor cycles - Held that:- During the course of assessment proceedings, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case was selected for scrutiny as per CBDT instructions for manual selection of cases and accordingly, notices u/s 143(2) 142(1) of the Act were issued. In response to the notices, the authorized representative of the assessee appeared from time to time and furnished books of accounts and other information called for. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has claimed an amount of Rs. 42,30,354/- towards freight and carriage outwards. On verification of the vouchers furnished in support of the claim, it was noticed that all the vouchers are selfmade and do not contain any supporting evidences and also addresses of the payees. Therefore, the Assessing Officer asked assessee to file o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uantity transported to prove the genuineness of the payments and also explained the facts and circumstances under which such payments are made. The Assessing Officer without appreciating the proper facts made adhoc disallowance, which is not correct. Similarly, as regards the depreciation on motor cycles, the assessee submitted that it has bills for purchase of motor cycles. However, while submitting the said information, the assessee could not produce the invoices for two motor cycles, which happened by oversight while preparing the said information. The said invoices are very much available with the assessee, if proper opportunity is given the same shall be given to the Assessing Officer for his verification. The CIT(A) after considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the form of way bills and other details. The assessee has proved the expenditure by production of way bills, quantity of goods transported, corresponding sale to dealers, etc. Under these circumstances, the Assessing Officer was not correct in making adhoc disallowance. The Authorised Representative further submitted that adhoc disallowance of expenditure, on estimation basis by holding that expenditure is supported by self made vouchers is not correct, unless proved otherwise as was held in the case of ITO Vs. Bajrang Trading Company and 3F Industries Vs. JCIT reported in (2014) 63 SOT 314. The Authorised Representative further submitted that 10% adhoc disallowance made by the Assessing Officer is quite high, therefore, requested to sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed Representative of the assessee requested for scale down the disallowance made by the Assessing Officer. The Ld. D.R. on the other hand did not object for the proposal. Therefore, to meet the ends of justice, we direct the Assessing Officer to disallow 5% of carriage inward expenditure. Accordingly, we direct the Assessing Officer to disallow 5% of expenditure under the head carriage inwards. 6. The next issue came up for our consideration is disallowance of depreciation on motor cycles. During the course of assessment proceedings, the assessee could not produce bills in support of the capital expenditure. The assessee s contention is that it has bills in support of the fixed assets, however could not produce before the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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