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TMI Blog2019 (6) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... 60,40,964/- III. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in deleting the adhoc disallowances @ 25 % made by the AO on account of Salary, contribution to various funds arid workman & Staff welfare expenses of Rs. 5,86,48, 850/-. IV. On the facts and in the circumstances of the ease, the Ld. CIT(A) erred in deleting the adhoc disallowance @ 25% made by the AO on account of Salary, Contribution to various funds & workman & Staff Welfare Expenses of Rs. 5,86,48,850/- V. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in deleting the ad~ disallowance @25% made by the A.O. on account of Training & Seminar Expenses of Rs. 11,33,890/-. VI. On the facts and in the circumstances of the case, the Ld. CIT( A) erred in deleting the additions @ 100% made by the AO on account of business promotion & advertisement expenses of Rs. 62,74,237/-. VII. On the fncts nnd in tire circumstances of the case, the Ld. CIT(A) erred in deleting the adhoc disallowance @ 25% made by the AO on account of travelling and conveyance of Rs. 50,74,237/- VIII. On the facts and in the circumstances of the ease, the Ld. CIT(A) erred in deleting the disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge Loss Rs. 1,30,19,006/- 100% (m) Recruitment & Relocation expenses Rs. 18,35,250/- 25% 3. On appeal before the ld. CIT(A), all the disallowance was deleted. Aggrieved by the order of ld. CIT(A), the revenue/Assessing Officer has filed the present appeal before us. 4. We have heard the submission of ld. Department Representative (DR) for the revenue and ld. Authorized Representative (AR) of the assessee and have gone through the orders of authorities below. 5. Ground No. 1 relates to non-consideration of remand report by ld. CIT(A). The ld. DR for the revenue submits that ld. CIT(A) that all the additions/disallowance were deleted by ld. CIT(A) without appreciating the remand report. The ld. DR for the revenue prayed that matter may be restored back to the file of ld. CIT(A) to consider the remand report and pass the order afresh. 6. On the other hand, the ld. AR of the assessee supported the order of ld. CIT(A). The ld. AR of the assessee submits that the Assessing Officer passed the assessment without giving sufficient and fair opportunity to the assessee. The assessee was never issued show-cause notice on the various disallowances made by Assessing Officer. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g before the ld. CIT(A) along with assessment record. On perusing of record, the ld. CIT(A) recorded that on the given date, the assessee had appeared before the Assessing Officer along with all bills, vouchers and audited accounts. The Assessing Officer admitted that no discrepancy was found in the bills, vouchers and books of account maintained by assessee and all necessary bills produced were verified. The Assessing Officer undertook to furnish remand report within next two working days. On 21.04.2017, the Assessing Officer furnished the remand report. The ld. CIT(A) has recorded the contents of remand report in para-6.1.15 at page no. 23 to 34 of his order. The copy of remand report was furnished to the assessee for their comment. The assessee furnished their response to the remand report. The comments/reply of assessee is recorded by ld. CIT(A) in para-6.1.6 at page no. 35 to 38 of his order. 8. We have noted that after recording the contents of remand report and the reply/objection of assessee, the ld. CIT(A) proceeded to adjudicate the various other grounds of appeal raised by assessee. In our view, the ground of appeal raised by Assessing Officer/revenue has no leg to stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computer, the Assessing Officer identified discrepancies in four receipt with regard to receipt for invoices no. 1112/126089 and for invoices no. 1112/126090 both dated 29.11.2011 for Rs. 77,000/- each, invoices no. 1112/135293 & invoices no. 1112/135293 both dated 10.01.2012 for Rs. 2,000/-. The Assessing Officer on the above discrepancies justified the disallowance of Rs. 97,68,069/-. The second addition to fixed asset relates to furniture & fixtures. The Assessing Officer in his remand report accepted that all invoices is duly verifiable and certified by Auditors. For addition to office equipments, the Assessing Officer in his remand report stated that on verification, it was noted that equipments of Rs. 48,16,877/- were purchased in Financial Year 2008-09. Further, Polycom Inc. invoice dated 16.12.2011 for Rs. 49,92,982/- has been put to use on 15.12.2011. The shipping of goods/asset would have taken a reasonable time from USA to India. The assessee has surprisingly used the goods prior to purchase. Similarly, the goods purchased from the same consignee dated 28.12.2011 for Rs. 6,70,446/- have been put to use on 31.12.2011, which shows that goods were shipped and installed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Freight Expenses and Recruitment & Relocation Expenses. Before making addition, the Assessing Officer concluded that the assessee has not filed any documentary evidence nor furnished any details, therefore, adhoc disallowance on account of all these expenses @ 25% disallowed. Before the ld. CIT(A), the assessee furnished detailed submission along with documentary evidences as stated above, the submission and the documentary evidences of assessee was forwarded to the Assessing Officer for his remand report. The Assessing Officer furnished his remand report on 21.04.2017. The ld. CIT(A) after perusing remand report concluded that the addition on the presumption that no bills or voucher or books of account produced cannot be sustained on adhoc basis. The Assessing Officer made disallowance without specifying any specific incidence, such disallowances are not sustainable as per the provisions of law. 13. We have independently examined the disallowances. The Assessing Officer made 25% disallowance on account of salary, contribution to various funds and workmen and staff welfare. During the remand report, the assessee furnished details of salary and allowances, furnished copy of Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, the ld. AR of the assessee submits that the Assessing Officer made addition without any specific reason. The ld. CIT(A) after considering the remand report find that the Assessing Officer has not specified any discrepancies and considering the remand report deleted the entire addition/disallowance. 15. We have considered the submission of both the parties and have gone through the orders of lower authorities. The Assessing Officer made the addition by making 100% disallowance holding that no proof, bill or voucher was produced. For business promotion and advertisement Expenses and that no TDS under section 194C was deduced. For Professional Fees & Travelling Expenses, the Assessing Officer concluded that no details were furnished. For Outsource Expenses, the assessee has not deducted TDS. Therefore, the Assessing Officer has made 100% addition on these expenses. The ld. CIT(A) deleted the entire addition holding that no discrepancies in the vouchers and books of account was noticed by Assessing Officer and that all these facts were verified from the assessment record that all the vouchers and books were produced before Assessing Officer. 16. We have examined all these additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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