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TMI Blog2019 (11) TMI 1295X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This assessee's appeal for A.Y. 2014-15, arises from order of the CIT(A), Gandhinagar, Ahmedabad dated 26-02-2018, in proceedings under section 143(3) of the Income Tax Act, 1961; in short "the Act". 2. The assessee has raised following grounds of appeal:- "1. The learned CIT (A) is unjustified & erred in law by confirming addition of Rs. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rutiny assessment. The assessment u/s. 143(3) of the act was completed on 22nd December, 2016. The remaining facts of the case are discussed while adjudicating the aforesaid two grounds of appeal as under:- Ground No. 1 (Addition on account of Vat refund income not shown in return of income) 4. During the course of assessment, the assessing officer noticed that the assessee has shown Vat payab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concealed Vat income. 5. The assessee has preferred appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 6. We have heard the rival contentions on this issue. With the assistance of ld. representatives, we have gone through the material on record and it is noticed that assessee company has credited the Vat refund of Rs. 79,78,941/- to the Vat payable account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various expenses as under:- Expenses Claimed Proposed Disallowance Labour Charge Rs. 36,12,932/- Rs. 1,00,000/- Machinery repair and Maintenance Rs. 10,94,508/- Rs. 1,00,000/- Foreign Travelling Rs. 1,42,000/- Rs. 50,000/- Outward Freight Total exp. Rs. 8,66,66,982/-, out Rs. 3,84,954/ - @ 10% of which Cash Rs. 38,49,538/- Building repair Rs. 4,75,564/- Rs. 95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,42,000/- and this disallowance is 30% of the total expenses. We observed that it will be reasonable to restrict the disallowance out of foreign travelling expenditure to the extent of 20% of such expenses which comes to 28,400/- as against Rs. 50,000/- disallowed by the assessing officer. Accordingly, this ground of appeal of the assessee is partly allowed. 10. In the result, the appeal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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