TMI Blog2016 (5) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... s and vouchers, the AO disallowed @20% of expenses - Held that:- It is observed that no defect whatsoever was pointed out by the Assessing Officer in the vouchers produced by the assessee in support of its claim disallowed by him merely on the ground that the vouchers produced by the assessee were only self made vouchers. Keeping in view the nature of the business of the assessee as well as the nature of general expenses incurred during the course of business , we are of the view that the claim of the assessee on account of general expenses, which were duly supported by selfmade vouchers as well as other details, ought to have been examined properly and there was no justification on the part of the authorities below to make a disallowance on account of general expenses incurred during the course of business without pointing out any material or specific defect in the self-made vouchers and other details produced by the assessee in support of its claim. - Decided in favour of assessee - ITA No. 415/Kol/2013 - - - Dated:- 23-3-2016 - Shri M. Balaganesh, A.M. Shri S.S.Viswanethra Ravi, J.M. For The Appellant : Shri P.K. Sanghai, FCA For The Respondent : Shri Nongothung J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raceable. Thereby, on failure to establish the whereabouts of transferor of said amount, the AO considered such amount earned from undisclosed sources and added to the income of the assessee. 5. The CIT(A), in first appellate proceedings, was of the view that the assessee could not give any proper explanation and treated the submission made before the CIT(A) as general in nature and confirmed the same addition made by the AO. 6. Before us, the A/R of the assessee contended that the AO examined the books of accounts and they are not rejected. The assessee produced every details of sales to the AO. The AO and CIT(A) examined and verified the details of sales and purchases. But both the authorities below did not reject assessee s accounts, sales and purchases. The assessee received the said amount through account payee cheque and referred to the page 14 of paper book. The ld. DR submitted that the assessee did not properly explain the cash credits of the said amount and relied on AO s and CIT(A) s order. 7. Heard both representatives and perused the material available on record. The case made out by the AO in respect of addition of ₹ 3,50,000/- that no sales transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee before the AO, as well as before the CIT(A) that the assessee does its business in local market by way of a direct sale and through broker and agent. The said sales were effected through M/s.Asia Trading, details of invoices and confirmation of accounts which were placed at page 17 to 21 clearly show that the assessee raised such invoice on various dates regarding the sales transaction in favour of said M/s. Asia Trading, and the other confirmation of accounts and bank statement at pages 22 and 35 shows to establish the same. Regarding the identity of the purchaser i.e. the broker for said M/s. Asia Trading produced PAN Card and Election Commission card at pages 36 and 37 before the AO and CIT(A). Having the particulars of bank details and identity proof, the AO could not verify the details of bank account and identity of the said broker under notice. The ITAT, Delhi C bench in its decision in the case of DCIT-vs- Eland international (P) Ltd. in ITA No.3424/Del/2007 dismissed the ground of the Revenue on this issue by observing as follows:- We have considered, the facts of the case and rival submissions. From the submissions made before us, it is clear that the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, we are of the view that the addition made by the AO and confirmed by the CIT(A) is improper and unjustified. Accordingly, we delete the aforesaid addition of ₹ 43,74,210/-. 12. Ground no.3 involves a claim of ₹ 1,62,743/- as general charges. The case of the assessee is that it incurred such expenses for conducting business and wholly for the purpose of business affairs. For non-production of proper bills and vouchers, the AO disallowed @20% to an extent of ₹ 32,550/- on the basis of estimatation. 13. While dealing with issue in first appeal, the ld. CIT(A) disallowed 10% as against 20% made by the AO. 14. Before this Tribunal, the ld. A.R. contended that the assessee produced all the details indicating expenses incurred during the course of business. The AO did not give any consideration to the vouchers submitted by it, without giving any reasons, on estimation added ₹ 32,550/- @ 20% as ld. CIT(A) restricted the same at 10%. The ld. DR submitted that all the details produced by the assessee are self-made vouchers and the assessee did not maintain external evidence to claim such expenses and relied on the order of the AO. 15. Heard and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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