TMI Blog2011 (6) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard Shri Pradeep Kuamr Mitra, ld. Sr. DR for the Revenue and Shri Ajay Tulsiyan, ld. Counsel for the assessee. The crux of arguments on behalf of the Revenue is that during assessment proceedings, it was observed from the P L account that certain expenses increased disproportionately as compared to sales, for which, our attention was invited to para 9.1 of the assessment order by further submitting that there was increase of expenses upto 170%. Some of the expenses were argued to be non-verifiable of certain parties or the persons to whom the assessee made payments of the colliery and godown expenses, therefore, the disallowance, so made, was argued to be justified. On the other hand, the ld. Counsel for the assessee strongly defen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses has been made with reference to sales. However, on appeal, the ld. CIT(A) considered the submissions of the assessee, which are available at pages 27 to 29 of the paper book and concluded as under: 4.2 Coming to the next issue of disallowance of colliery and godown expenses at ₹ 14 lakhs, the appellant in detailed written submissions filed which were also submitted before Assessing Officer has emphasized that increase in colliery expenditure was for the reason that the appellant company started procuring Indian coal from South Eastern Coal Ltd. (SECL) and Mahanadi Coal Ltd. (MCL) which was not free from stones etc, and hence workers had to be paid for picking stones etc., and major portion of such expenses were attributabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early threefold in the profit from ₹ 333 lacs to ₹ 1018 lacs (as per books of accounts) whereas the submission of the assessee is that the impugned expenses were incurred after proper authorization and the accounts were subjected to audit, therefore, no disallowance is called for. In view of these facts, we direct the ld. Assessing Officer to make 10% adhoc disallowance to meet the end of justice so that no grievance is caused to either side because the ld. CIT(A) has not controverted the finding of self-prepared vouchers or some of the expenses and for want of these expenses, these could not be verified along with the persons to whom these payments were made on account of impugned expenses. At the same time, some payments were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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