TMI Blog2016 (8) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... ndings recorded by the Ld. CIT(A) and therefore, we do not find any justification to make any interference in the order of the Ld. CIT(A) and the same is therefore upheld. - Decided against revenue Disallowance made on account of 1/3rd of various expenses - Held that:- It is noted that books of accounts were produced by the assessee before the AO. But he was not satisfied with regard to the supporting evidences filed by the assessee and accordingly he made disallowance @ 1/3rd of the total expenses on estimate basis. During the course of hearing before us it was brought to our notice that in A.Y. 2008-09, disallowance has been made @ of 10% of these expenses which are identical in nature. Thus, taking into account all facts and circumstances of the case, we direct the AO to reduce the disallowance @ 10% of ₹ 35,59,716/- which comes to ₹ 3,55,972/-, the remaining disallowance is directed to be deleted. - Decided partly in favour of assessee - ITA No.6781/Mum/2014 - - - Dated:- 29-6-2016 - Shri Amit Shukla, Judicial Member, and Shri Ashwani Taneja, Accountant Member For The Appellant : Shri R.S. Khandelwal (AR) For The Respondent : Shri Asjhar Zain V.P. (D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. CIT(A) that in fact there was no difference and therefore the AO had wrongly rejected the books of accounts and accordingly addition made by the AO was directed to be deleted. 3.3. During the course of hearing before us, it was submitted by the Ld. DR since assessee could not explain the facts properly to the AO, the accounts were rightly rejected. But, in response to our query, the Ld. DR submitted that Ld. CIT(A) has given factual findings to reconcile the alleged difference in all the three areas wherein Ld. DR was not able to point out anything wrong. 3.4. Per contra, Ld. Counsel of the assessee drew our attention on various pages of the paper book as well as detailed findings recorded by the Ld. CIT(A) and argued that Ld. CIT(A) has considered all the facts and figures in detail and thereafter arrived at a correct conclusion that in fact there was no difference. He relied upon the detailed findings of Ld. CIT(A). It was further submitted by him that perusal of the G.P. chart of past 5 years as reproduced by the AO in the assessment order shows that the GP of the current year was 9.92% which was higher than the G.P. of the earlier years i.e. 8.52%. Thus, in any c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.3.3 The appel lant in i ts submission has stated that during the course of assessment proceedings, it has shown that purchases of ₹ 17,69,14,566/- is inc lusive of taxes and dut ies and af ter deduc t ing the taxes and dut ies, revised list was also filed before the A.O. which will show the total purchases of material at R.s.16,36,17,325/-, that is the amount debited in the P L Account. In the reconciliation statement also, the appellant has shown gross purchases as per purchase register at ₹ 17,69,14,566/- and also explained that the above purchases are inclusive of VAT amount of ₹ 74,66,643/- and when the same is excluded, the purchases without VAT comes to ₹ 16,94,47,923/-. It is further stated that in the purchase register, purchase of fixed assets, is also included to claim set off of VAT paid in respect of purchases. The total amount relating to f ixed assets is ₹ 58,30,598/- and if the same is reduced f rom the above amount of ₹ 16,94,47,923/-, the resultant f igure tal l ies with the purchase amount of ₹ 16,36,17,325/. debited in the P L account and also mentioned in the order. In the said respect, I find that the .A.O. whil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es including duty and taxes of ₹ 130,32,970/-, is ₹ 17,79,49,287/- and there is discount received of ₹ 3,09,589 and net bale is of ₹ 16,52,25,906/-. The AO has also recorded 'that for the purpose of valuation of purchase and sale, Section 145A( i i ) of the Act is appl icable and the appel lant has shown the sale consideration excluding duty and taxes. On account of the said discrepancy/observation made by him, the A.O. rejected the books of accounts of the appellant. 3.3.5. During the course of appellate proceedings, the appellant has submitted that there is no discrepancy in the books of account. The appellant has also furnished the reconciliation of sales, wherein gross sales as per Sales Register is ₹ 17,79,49,287/-, i.e. same as mentioned by the A.O. in the order which is inclusive of VAT and CST of ₹ 1,23,21,720/- and service tax of ₹ 7,30,250/-. The total of the above amounts comes to ₹ 1,30,32,970/-, which is the same as mentioned by the A.O. The net sales is ₹ 16,49,16,370/- and after discount received of ₹ 3,09,589 is added, the total sales is ₹ 16,52,25,906/-, which is as per the P L account. 3.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or wrong in the detailed findings recorded by the Ld. CIT(A) and therefore, we do not find any justification to make any interference in the order of the Ld. CIT(A) and the same is therefore upheld. 4. In the result, appeal filed the revenue is dismissed. Now we shall take up assessee s appeal in ITA No.6781/Mum/2014 for A.Y. 2010-11: The appeal has been filed by the assessee on following grounds: 1.In Facts and circumstances of the case and in-law the learned Commissioner of Income Tax (Appeal) erred in upholding the additions made by the Ld. Asst Commissioner of Income Tax on account of expenses. 2.The learned Commissioner of Income Tax (Appeals) upheld the additions made by the Asst Commissioner of Income Tax without considering the facts of the case and ignoring the various documents produced and various explanations offered to him during the course of hearing. 3.The Appellant hereby prays that the additions made by the Income Tax Officer may kindly be deleted. 4. Appellant craves to add, alter, amend or modify any of the above said grounds of appeal till the final disposal of appeal. 5. The solitary issue raised by the assessee is wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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